☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 3, 2019 1:22:59 PM

I just moved to Maryland and closed out my 401k but now I have to pay Maryland state tax on that money, WHY??

0 1 323
1 Best answer
Alumni
Jun 3, 2019 1:23:00 PM

You owe MD tax because pension payments are "sourced" to the state where you live when received.

As an example, if you lived in MD and moved to FL, the amount would have been state tax free because it would have been sourced to FL after the move.

1 Replies
Alumni
Jun 3, 2019 1:23:00 PM

You owe MD tax because pension payments are "sourced" to the state where you live when received.

As an example, if you lived in MD and moved to FL, the amount would have been state tax free because it would have been sourced to FL after the move.