Do I report a 401k early distribution on ny nonresident return and nj resident return?

[vais4u]

Do I report an early 401K distribution hardship withdrawal on both New York non-resident return as well as New Jersey resident return?

[DawnC0 · Accepted solution]

Yes on your NJ resident return and No on the NY nonresident return.  

Taxpayers are subject to NYS tax on New York-source income while a nonresident.   Individuals domiciled in New Jersey are taxed on income from all sources.

You should enter your 1099-R on your federal return and TurboTax will transfer the income to the appropriate state return(s).  If you received a loan through your employer, you will not receive a 1099-R and do not need to report it anywhere on your tax return.   Only enter distributions that you received or will receive a 1099-R for.