Greetings! My wife and I lived and worked in Kentucky for most of 2024. On November 22, 2024, we moved two miles across the Ohio River to Indiana. I’m retired and only work a few months each year. I did not work anywhere after moving to Indiana, however I did collect SS Retirement along with a monthly pension from the company I retired from. My wife continued working her job in Kentucky for the remainder of 2024. Neither of us worked in Indiana at all. How do we file our state taxes? Do we file both Indiana and Kentucky taxes? If so, how do we split the income between the states?
You are part-year residents of Kentucky and Indiana.
Indiana has a claim on your IRS form 1099-R pension distribution for the period after your move.
Indiana has a claim on your spouse's wage income for the period after the move to Indiana. I assume that her W-2 will report both Kentucky and Indiana income and taxes withheld.
Social Security may be allocated between Indiana and Kentucky but is not taxable in either state.