Filing 1099R after moving mid year to another state

[sonzoil]

We moved mid year from CT to Mass.  My wife has 2 small annuities she received 1099Rs for. Under the question in the program "Did you receive this form 1099-R while you were living in one of the following states? Check up to two states that apply to this distribution."  how do I choose?  The 1099Rs both show CT took out state taxes. One annuity pays monthly, and one paid only once a year in April. We lived in CT from Jan to April, then moved to Mass (lived here from May to Dec 2019). Do I just check the box CT or do I check CT and Mass , and if so on the next screen, how do I fill in the amounts of the 3 boxes listed??

I don't have any Mass payer info from the insurance companies, since they only took CT tax.

[KathrynG3]

Check the boxes for CT and MA. Split the income based on the dates of residence if it was not fully received before leaving Connecticut.

See 2019 Massachusetts Form 1 NRPY Instructions, page 7: Massachusetts includes taxable pensions and annuities as gross income for part-year residents among other items listed. Later, on this same page, column three: "Your deductions and exemptions are based on the number of days you were a Massachusetts resident or the amount of income that is subject to Massachusetts tax."

Typically, the allocation is done by residence status. Therefore, Connecticut will collect tax on the portion while Connecticut residents. This would make the pension received in full as of April taxable to Connecticut only. The other pension would be taxable in Connecticut only through April. The balance of payments received May through December would be taxable by Massachusetts unless they are coming from the US Government or Massachusetts.

It would appear you will have an overpayment in Connecticut and an underpayment in Massachusetts.

I am sure you have updated the pension with your new address and requested Massachusetts taxes withheld going forward.

Click the link for 2019 Form CT-1040 NR/PY Instructions. See page 27 for a part-year residents worksheet. It would appear Connecticut will only tax income received while residing in that state.

[sonzoil]

So, on the 1040 I am only filling in the three boxes shown on the second screen for Mass, by computing the May through December distribution, and not filling in a EIN number, since there was no taxes withheld by Mass, correct? On the other other annuity that only has CT withholding paid in April, one time, I should only check the CT box and not Mass box, correct ?

[KathrynG3]

1. It is fine to enter the EIN unless they are asking for the state EIN. You can confirm with the payer if there is a separate EIN for CT and MA. Otherwise, it may cause an error for missing EIN information. If the EIN was no different in CT from the federal, I would enter it in for MA, indicating that -0- was withheld.

2. Correct. Only check the CT box and not Mass box for the annuity received in April.

For 2020, everything should be coded to Massachusetts for you by the payer.

[sonzoil]

Kathryn, I really appreciate the help. They are asking for the payer's state ID, which is apparently different for each insurer for the same state , i.e. they have different numbers they each use for Mass or Ct.  I decided to call the annuity companies to get their specific numbers, so I can fill them in (or should I leave it blank??)  I put in for tax withheld a 0 for Mass on the annuity that paid monthly.  One last question is when I put in the amount of the distribution for the 8 months I lived in Mass, I am typing in the GROSS distribution amount, and not the TAXABLE amount, correct ? I assume when I fill out the Mass State return I put in the cost basis or taxable amount so I will only be taxed on that.

[AmyC]

Yes, you will fill in the gross amount on the form. Yes, the MASS return will let you correct the taxable amount. Yes, you need to fill in the state ID. That helps the state match up forms between payers and payees.

[sonzoil]

Still confused about (1) annuity that had to be split between CT and MA.  When I record the info off my 1099R, the state tax was withheld for CT . There were no taxes withheld from MA while living there from May through Dec.  On the 1099R, I recorded box 12 for CT.  Box 14 (state distribution was empty), but I had to record it as partial distributed to CT and partial to MA (with no tax withheld). I had to do this , so the following screens showed  amount for MA appeared correct.  If I didn't the system would populate the amount distributed to MA as box 2A (taxable amount) for the total distribution, not just the amount allocated to be taxed by them.  Is this okay to do?  I was not able to get a Payer ID from the insurance company for MA, since they told me, since no tax was withheld they do not have that number.  ???

[DavidD66]

No, you shouldn't do that.  You need to enter the 1099-R exactly the way it is printed.  Do not make changes.  The fact that it shows all the distribution going to CT, does not make it taxable by CT.  You have to adjust the amount of income taxable to each state in the step-by-step interview for the state.  You do not need a MA withholding number.  

[sonzoil]

Ok, but if I leave it alone, then the screen after the screen for checking boxes CT and Mass , when asked the amount for MA, it  auto populates it for line 2A amount (Taxable Amount) off the 1099R, which is totally incorrect??????

[sonzoil]

Ok, but if I leave it alone, then the screen after the screen for checking boxes CT and Mass , when asked the amount for MA, it  auto populates it for line 2A amount (Taxable Amount) off the 1099R, which is totally incorrect??   Should I just leave it that way ??

[BillM223]

@sonzoil

You are running two parallel discussions on the same topic. Please stop responding to this thread and instead only answer the other thread at https://ttlc.intuit.com/community/state-taxes/discussion/re-state-tax-portion-popluated-automaticall...

[sonzoil]

Kathryn, you helped me in the past, maybe you can clarify here.  If you remember from a while back I had a weeks income where I believe I was taxed both my MA and CT on that same income. I had moved from CT to MA, but was still working in CT at the time. I received answers to my inquiry , but the software is creating issues for me, as to inputting the correct figures. See below, my question I sent out, but got no responses.

 I used a reply  to fill in fields on the questionaire for obtaining a credit from Mass on taxes that I paid to CT while working in Ct , but living in Mass.  I seem to get the credit now, but the software made me change on Schedule OJC  worksheet for Mass, line 1 for the 5.05% income to the total amount of income I was taxed on by CT.  That is not the smaller dollar amount which was taxed on by both CT and Mass for that one week.  It made me change it to Total CT income taxed, which is not what line 12 on 1-Nr/PY shows on the Mass return.  That is a much smaller amount also.  I believe both numbers should be the same.  Any clarification or help would be appreciated.