Investment Income and IRAs

[rsherry8]

A person moves to Delaware for a temporary job assignment.  They maintain another place to live in a different state. While in Delaware, he/she takes money out of her IRA and  sells a stock at a small gain. Is the distribution from the IRA taxable in  Delaware? Is the capital gain taxable in Delaware?

[MaryK4]

If you did not change you state tax residency or maintain an abode in Delaware and spends more than 183 days there, you can report and pay your 1099-R and capital gain in your resident state (as long as the capital gain property was not Delaware-source).   

[rsherry8]

If the person lived in Delaware from Jul 15, 2022 to Feb 1, 2023 that is more than 183 days. However, it is less than 183 days in 2022. So, in this case does the person have to report the investment income in Delaware?

[PattiF · Accepted solution]

No, you do not need to claim the stock sale and IRA distribution that occurred in 2022. For that year, you were present in the state for less than 183 days.

@rsherry8