I lived in VA half the year, retired, and move to DE (permanently) for the other half of the year.
My pension began in August so all of my pension income will be reported on our DE return (part year return).
I have a 1099R for this income, but I also received a W-2 statement for WAGES because the life insurance benefit that comes with my state pension plan is a taxable benefit (box 12, code C). $112 in wages.
My question is, which state return, DE or VA do I report these wages? I believe from answers I read elsewhere, DE is not likely to tax this benefit but should I add it to the income I will report for the first 6 months we lived in VA or add it to DE income. Where in Turbo Tax do I enter this income? Under pension section or wages and income section?
Assuming the life insurance began when you retired, which according to you was in the second half of the year. If that is the case, then you should report it on your Delaware return. Given the amount, it should have much of an impact regardless of which state report you report it on.