How to file after moving from Connecticut to Massachusetts mid year ?

[sonzoil]

My wife and I moved from Conn to Mass mid year.  She has 3 small annuities that made pay outs in 2019 to her (from estate of deceased parent).  She also has a teacher's pension from Conn that pays her monthly.  I received 1099-R forms on the 4 different incomes.  How do I input in turbotax the monies received from Jan to April where we lived in Conn, and from May to December when we resided in Mass? Am I suppose to divide and  input 4 months worth of the monies to be taxed in Conn, and 8 months worth to be taxed in Mass? This would involve changing the amounts on the 1099Rs that the companies forward to the Federal Govt. One annuity pays monthly, the other two only once a year.  I never had to do this before, and I have no idea how to handle.  Thanks for any help.

[DavidD66]

You should enter the annuities exactly they way they are printed.   For state taxes, information printed on the 1099-R does not make the distribution taxable or non-taxable to a particular state, it simply reports state tax withholding.  The distributions are taxable to the state where you were residing at the time you received them.  For each state, there will be a section in the program interview where you allocate your income to that state.  Determine how much income you received while living in each state, and allocate that amount in the state tax section.

[sonzoil]

Thanks, but on the 1040 Federal, after I inputted the information, a second page opened on each annuity requesting I input tax ID number for Massachusetts that the issuer used ?? (don't have that since Mass tax was not withheld), and the amounts of the distribution and taxable amounts?? Again, this is on the 1040 Federal. Didn't do the state forms yet.

[KathrynG3]

It depends. When entering the 1099-R's, only enter the EIN for the state as received. 

When I recreated this scenario in a test account, I was not asked about Massachusetts in the Federal interview. It is unexpected that there would be any questions about the states in your federal interview. By deleting the 1099-R's, checking for updates, and re-entering the 1099-R's, you may be able to resolve the issue fastest.

Click this article for more details: How do I file a part-year state return?

In the Connecticut interview, there should be a section for Nonresident Wage Allocation where you can allocate by number of days worked inside and outside of Connecticut. Please be sure to check that the Teacher's Pension is getting the new discount as applicable for the period of residency, see page 5 and 24 of the CT-1040 NPY Online Tax Booklet.

I recommend these steps in TurboTax Online:

1. Delete at the minimum any state detail that was not on the originally issued 1099-R. You may need to delete all the affected Form 1099-R's and re-enter them. Just be sure to enter the 1099-R's exactly as they were received in the Federal Interview. To return to this area of your return:
   1. From the left menu, select Federal
   2. On Wages & Income, scroll down to IRA, 401(k), Pension Plan Withdrawals (1099-R) and click Edit/Add
   3. Check each 1099-R as recommended
2. Deleting Connecticut and Massachusetts.

   1. To delete the state: 

   2. From the left menu select State>
   3. Continue>next to Connecticut, click the Trash Can icon and follow through the rest of the questions ending with Done
   4. Repeat sub-steps 1-3 for Massachusetts
3. Re-add Connecticut. 

   1. Click Add Another State>Your state>and go through the interview again.

4. Re-add Massachusetts

   1. Click Add Another State>Your state>and go through the interview again.

For TurboTax Desktop, it may be faster to delete the forms from the Forms interview if you want to re-enter the 1099-R's. For the states, go to File in the main menu, and scroll down to Remove a State. Then, follow the prompts.

It is important to end with the state you are living in on December 31, 2019.