cashed in 401, live in 1 state taxed by another state

[Doc462]

Cashed in a 401K, resident in Mi. check sent to previous address in VA. that son resides now, how to get taxes back from VA. file non resident but is it considered income earned in VA.

[DMarkM1 · Accepted solution]

In order to get any taxes refunded you will need to file a return for that state.  The type of return depends on the situation.  I assume there were taxes withheld for VA reported on the Form 1099R. If not, then there are no taxes to be refunded.

First enter the Form 1099R information in the federal interview.    

If there were VA taxes withheld and you were a resident of VA during any part of 2020, you will be filing a part-year resident return for the dates you were in VA.  You only include any income that was earned while a resident there or from VA sources while a non-resident.  If the 401K distribution was while you were a non-resident it is not VA income. 

You will indicate the periods of residency in each state in the "My Info" section of TurboTax.  That will generate part-year returns for each state.

If you were not a resident in VA during 2020, you will file an non-resident return and only include VA source income.  Again, if the distribution was during your non-resident period it is not VA income.   

You will indicate that you did not live in VA in 2020, but that you had income in VA in the "My Info" section of TurboTax.  That will generate a non-resident return for VA.