According to Missouri DOR, I am considered a Non-Resident. Question - Is an IRA withdrawal taken during brief time I did reside in MO subject to Missouri state taxes?

[spbeatty]

MO tax info indicates non-residents pay taxes on income from MO sources and examples include from MO businesses, lottery winnings, etc... nothing regarding an IRA withdrawal from an investment firm with HQ in another state.  Did ask MO DOR about this and interest and dividend income - they replied - Ask an accountant

[Vanessa A]

Are you a Non-Resident or Part Year Resident?

If you established a home in MO for more than 30 days, you would be a part year resident. If you took the withdrawal while a resident of MO, even if your residency was for a brief period even if the investment firm is headquartered in another state, it is taxable to MO.

Any income you received from any source, during your residency, is taxable by MO. 

If you did not establish a home in MO, then you would not be a resident.  Example, if you are a travel nurse on assignment in MO and stayed in an AirBnB for the 13 weeks you were there, but maintained a home in PA, you would be a non-resident.  In this situation, the withdrawal would not be taxable to MO, just your home state. 

@spbeatty

[spbeatty]

According to MO DOR (refer to form MO-NRI pg 3 diagram) https://dor.mo.gov/pdf/nonres_flowchart.pdf 

I am considered a Nonresident - since I answered NO to question 1 -" Are you domiciled in Missouri?" and then also answered NO to question 2  of having spent more than 183 days in MO.

That  said - Nonresidents are required to pay income taxes on MO source income - hence my original question.  Is an IRA withdrawal (taken during my "less than 183 days spent in MO") considered MO source income?

[spbeatty]

Additional comment...

In using the MO-NRI diagram and answering NO to domicile question and then NO to time spent and therefore qualifying as a Nonresident - the question becomes whether or not I check Part A - Line 1 - Nonresident of MO  or

Part A - Line 2 - Part-Year Resident and complete MO-NRI

and then the important question of what constitutes MO source income...

[JulieS · Accepted solution]

Yes, it is Missouri source income.

Missouri defines Missouri source income as income received while living in Missouri, or obtained from Missouri sources. 

Even though you are technically a Missouri non-resident, you said you received this retirement distribution during the brief time you resided there. That would make it Missouri income.

You should check the state that is listed in box 15 of your 1099-R. If that says MO, it will be counted a MO income and you should list it as such on your MO-NRI. 

[spbeatty]

Hi Julie,

Yes, that makes sense to me.  A follow up question - does the same apply to any dividends, interest, and capital gains realized during the few months living in MO?  

[DianeW777]

Yes, you are on the right track.  Any income earned during your Missouri (MO) part year residency is taxed by MO.  Review your earnings statements for any income you earned to see when it was actually posted (accessible and received) to your account during the time you were there.