1099-R

[Alexfocht09]

I received my 1099 – R From, Nebraska. I did do a lump sum and got penalized. they took out federal and state tax. I received my lump sum while living in Pennsylvania, which is currently where I’m at. Do I file the 1099- R as a nonresident in Nebraska, or as a resident of Pennsylvania.? since I already was charged the taxes. Why would Pennsylvania charge taxes on that as well?

[DawnC]

If you never lived in Nebraska and there are no Nebraska taxes deducted on the 1099-R, then NO, you don't file a Nebraska return.  The payer's address doesn't matter for your tax return.    

You would just file a federal and resident PA return.   But you only need to enter your 1099-R on your federal return.   

TurboTax will transfer that along with the taxes you paid to your PA resident return.   Your resident state taxes all of your income.   You will get credited for all of the taxes that were withheld though, you won't be double taxed.  

Where do I enter a 1099-R?

[Alexfocht09]

we did live in Nebraska in 2023, but moved to Pennsylvania and spent the entire 2024 in Pennsylvania. I did receive my retirement lump sum in 2024 and received my 1099 – R for that a couple days ago, they did take out both federal and state tax for Nebraska, though. so should I still file it under Pennsylvania, then?

[AmyC]

Yes. For 2024, file:

• NE tax  nonresident return and NE will tax the income.
• PA resident so you will file a PA resident return and they will give you a credit towards the tax you paid NE. The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state,  if they have a higher tax rate along with differences in how the taxable income is calculated.

If your lump sum is from a NE source of income, it is taxable to NE. See NE taxes. Talk to the issuer of your lump sum to determine if it came from you working in NE or is unrelated to your NE income. You can also contact NE DOR.

• If it is unrelated, they should stop withholding NE tax. 
• If it is NE source income, you will continue filing both state returns.

Detailed information on the types of income that must be listed and included on line 1, Schedule III is available on DOR’s website. A partial list is shown below: 

• Wages, salaries, tips, and commissions; 
• Severance pay associated with Nebraska employment; 
• Dividends, interest, and other passive income; u Business income; 
• Farming and ranching income; u Partnership, S corporation, LLC, estate, or trust income;