Form 1099-INT, Box 1 - report on state return (part year resident)?

Anonymous · ‎March 11, 2021

Hello there,

In 2020 I moved from IN to AZ. In filling the IN IT40PNR, schedule A, should I report interest income (Box 1 of 1099-INT) as "Taxable Interest income" for "Income taxed by Indiana"? would that also apply for AZ?

Thank you!

MayaD · ‎March 11, 2021

As part year-resident you need to assign income to the state you were living in when you earned it. Interest is considered unearned income (interest, dividends, capital gains, social security, and IRA distributions). To allocate Interest income divide the year's interest by 12, and then multiply the figure by the number of months you lived in each state.

For more information please check How do I allocate (split) income for a part-year state return?

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MayaD · ‎March 11, 2021

As part year-resident you need to assign income to the state you were living in when you earned it. Interest is considered unearned income (interest, dividends, capital gains, social security, and IRA distributions). To allocate Interest income divide the year's interest by 12, and then multiply the figure by the number of months you lived in each state.

For more information please check How do I allocate (split) income for a part-year state return?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"