Moved to a new State

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How do I verify that the State I recently moved to has calculated my State taxes only for the 3 1/2 months I have lived here?

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ToddL99Answer

Alumni - Intuit

The most important question you didn't ask is "What state returns do I need to file?"

File an OK part-year resident return - you will owe OK tax on the pension income you received from 9/15/2020 to 12/31/2020.

File a CA non-resident return - you should get a complete refund of any CA tax withheld from your pension checks.

CA cannot tax your pension income since you aren't a resident of CA. It does not make any difference where you "earned" the pension. Only your state of residence can tax retirement income. Contact your pension administrator and tell them to stop withholding CA tax.

"Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of, or domiciled in, that state. For example, if you receive a pension from your former California employer and you now reside in New Mexico, California may not tax your retirement income. Because you are now a New Mexico resident, your retirement income is taxable in New Mexico. "

In the Personal Info interview, make sure you selected OK as your state of residence on 12/31/2020 (see attached sample screen). This should keep the program from thinking you moved out of OK during the year.

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ErnieS0

Alumni - Intuit

TurboTax will transfer W-2 amounts to the state program according to the state code on your W-2. Confirm this by looking at the state allocations. There will be a section in the states that will show you the amount of income being carried over and ask for if that’s the correct amount.

If you had different jobs in your old and new state, the amounts should be correct. If you worked for the same employer the numbers may not be right, if your employer, for example, continued to withhold tax from your old state for a while.

You will have to split other types of income yourself, including interest and dividends and stock sales.

We can assist you better if you clarify what state you lived in for 3 ½ months.

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sharee-thornberrAuthor

Level 2

I lived in TN until 9/15/2020. Then I moved to Oklahoma where I currently live. My retirement pension is an Orange County, CA pension. The funds are deposited directly to Wescom Credit Union, which operates in southern California only. Turbo Tax wants me to give an ending date to Oklahoma residence. I still live there. I do not have any additional income that I earned in Tennessee or Oklahoma. My County Retirement doesn't withhold State taxes for any States other than California. I still don't know if Turbo Tax calculated correctly or if I input the data correctly. I do not receive any W2 forms. I only receive a 1099-R. Help.

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ToddL99Answer

Alumni - Intuit

The most important question you didn't ask is "What state returns do I need to file?"

File an OK part-year resident return - you will owe OK tax on the pension income you received from 9/15/2020 to 12/31/2020.

File a CA non-resident return - you should get a complete refund of any CA tax withheld from your pension checks.

CA cannot tax your pension income since you aren't a resident of CA. It does not make any difference where you "earned" the pension. Only your state of residence can tax retirement income. Contact your pension administrator and tell them to stop withholding CA tax.

"Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of, or domiciled in, that state. For example, if you receive a pension from your former California employer and you now reside in New Mexico, California may not tax your retirement income. Because you are now a New Mexico resident, your retirement income is taxable in New Mexico. "

In the Personal Info interview, make sure you selected OK as your state of residence on 12/31/2020 (see attached sample screen). This should keep the program from thinking you moved out of OK during the year.