topic State tax return - early withdrawal from Teachers retirement system in State tax filing

State tax return - early withdrawal from Teachers retirement system

Rkf2010 — Thu, 18 Mar 2021 19:38:46 GMT

My daughter withdrew the total amount that was in her Louisiana teachers retirement account and received a form 1099-R showing fed taxes withheld but nothing for state. She currently lives in Delaware and teaches in PA. My question is does she need to file a Louisiana state tax return. I assume the withdrawal amount wouldn't need to be included in her Delaware or PA state returns?

Re: State tax return - early withdrawal from Teachers retirement system

JoannaB2 — Fri, 19 Mar 2021 04:31:29 GMT

NO, you don't need to file Louisiana state tax return, although, retirement was taxable in the state where the taxpayer lived when they withdrew the distribution. Retirement income is only taxable where you are living. It is not taxable in a nonresident state or the state where the retirement was funded if you are no longer living there. Therefore, it is taxable to Delaware but non-taxable to Pennsulvania.

[EDITED 3/18/2021 @ 9:26 PM.]

Re: State tax return - early withdrawal from Teachers retirement system

Rkf2010 — Wed, 24 Mar 2021 17:47:47 GMT

Thanks for the response , this definitely helps and will allow me to complete her returns.

Re: State tax return - early withdrawal from Teachers retirement system

Rkf2010 — Sun, 28 Mar 2021 21:34:39 GMT

A follow up to the below question, as a result of covid19 ma daughter had to teach remotely for a large part of the year, are any of the expenses she incurred to set up her instructional environment deductible? example desk, chair , lighting to facilitated remote instruction?

Re: State tax return - early withdrawal from Teachers retirement system

DaveF1006 — Sun, 28 Mar 2021 22:52:56 GMT

Yes, Hawaii does allow unreimbursed employee expenses to be itemized on her Hawaii state return providing she is able to claim itemized deductions in Hawaii.

The good news is that you can claim a standard deduction on the federal return and claim Hawaii itemized deductions. You will need to complete the Itemized Deductions section of the federal return so the information will flow to the Hawaii return. In the deductions and credits section of your federal return, you will see an employment expenses section listed. Then go to job related expenses.

If you are unable to itemize deductions, there are no COVID-19 special deductions or credits for teaching remotely thus there are no other ways of claiming these expenses.