Disaster Relief Distribution in relation to State Filing

[jmnicola]

I took a Qualified Disaster Distribution from my 401k in 2020 that I have elected to spread over 3 years. In the year that I received this Distribution, I was a full time resident in CO and claimed it as such. I have already filled out my 8915-F form for this current year to continue claiming the determined portion. However, I was only a part-time resident in CO in 2021,  I moved to OR in August and have been here since.  Should I be claiming the portion of this Disaster Distribution under my CO state taxes as well?? Kinda confused at this. As well, while we were residents of CO last year, my wife was receiving AZ unemployment benefits. Assuming that we need to claim these benefits under our CO state taxes as well. Can anyone confirm for me? Thanks!

[MaryK4 · Accepted solution]

Since you were a Colorado resident when you received the distribution, it is Colorado income.  You will want to include it as resident income and CO income received as a nonresident (and next year if required you may have to file a Colorado nonresident return to report next year's taxable amount).  Yes, you would have to report the AZ unemployment income to Colorado.