multiple states

[soebyjon]

I'm retired military and moved from AZ in March 2021 after taking a lump sum distribution from a trust company. I spent 4 months traveling with family in ND while waiting to move to ID in August.  How do I document this in Turbotax. How is the distribution treated for state tax purposes. How about mil Retirement income?

[MaryK4 · Accepted solution]

Retirement Income is taxed and reported (if required) in your resident state when you received it.  (This is a federal law.)  Your lump sum will be Arizona income.  Since you did not establish a new domicile in Idaho until August, you will want to file a Part Year Arizona (for January to August) and Part Year Idaho (August to December) income tax returns.  You will report the income based on your resident state when you received it.