topic @jslcontact in Retirement tax questions

Should I include dividend and distribution income (Form 1099-DIV) in all state returns?

jslcontact — Thu, 06 Jun 2019 15:15:12 GMT

I am preparing 3 separate state returns, as I am a remote employee that works for a university out of Virginia. At the same time I worked part of the year (4 months) in Iowa and the rest of the year (8 months) in North Carolina. The investments that I have are associated with my old home address in Virginia, as my mother was the creator of the account, although the investments are under my SSN. My Form 1099-DIV has the following boxes with totals:

1a. - Total ordinary dividends
10. - Exempt-interest dividends
11. - Specified private activity bond interest dividends

I currently have these amounts assigned to my Virginia return, but I don't know how to allocate them to my Iowa and North Carolina return. Do I need to allocate all of the totals for all three states, or is the investment only associated with the Virginia return based on the address?

So You allocate the personal dividends and interest only...

maglib — Thu, 06 Jun 2019 15:15:14 GMT

So You allocate the personal dividends and interest only to the states of residence. Your residence is the place you intend to return to as your permanent home. they are not linked to your temporary or non-resident employment at these other locations. You were not clear if any of these moves were permanent or temporary.

@jslcontact

maglib — Thu, 06 Jun 2019 15:15:16 GMT

@jslcontact

What you do with income such as dividends and interest wi...

MichaelL1 — Thu, 06 Jun 2019 15:15:19 GMT

What you do with income such as dividends and interest with the States is:

Allocate some to each state. If paid throughout the year (which most are) then allocate it by time in each state.

I see 4 months (1/3) for one state and 8 months (2/3) for the other. I do not see a filing requirement for VA unless you have VA taxes withheld and then would file a return with no income to get the money back.

See below:

https://www.tax.virginia.gov/who-must-file