1099r being taxed by states other than the one the...
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Returning Member

1099r being taxed by states other than the one the distribution was processed in?

Hello,

 

Background of question: 

I lived in California up until August of 2020, then moved to Washington State, however my work location is in Oregon. So I have 2 state returns (California and Oregon) since WA has no state tax. I took a 401k withdrawal (cares act) after the move, so the 1099r shows that the withdrawal is in WA. 

 

When I go through the guided process on turbotax to input the 1099r information, as soon as I finish those steps, I notice at the top where it shows my "refund status" for both CA and OR they skyrocket to me owing them money. 

 

What am I doing wrong that is making both CA and OR tax the 401k withdrawal that was not acquired in either of those states?

2 Replies
Level 15

1099r being taxed by states other than the one the distribution was processed in?

Just keep putting in your Federal income until every scrap of income/deductions/credits etc is filled in there and error checked. 

 

During the CA part-year interview and OR non-resident interview, you will be able to "allocate" what income belongs to each state...until then, each state form may assume all income is theirs to tax.  So if you are still waiting for some tax forms to put in the Federal section, leave the state interviews alone.

__________________

Hope you were not working in OR, both while a CA resident and while a WA resident too...the reverse tax credit for a part-year CA resident working in OR, and then you being resident in two states for the OR non-resident tax return could get really messy, and might take a professional tax preparer to puzzle out .

 

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
Returning Member

1099r being taxed by states other than the one the distribution was processed in?

Thank you for the reply, that clears things up. I never made it to the state tax section as I stopped and saved until I knew an answer.

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