retirement in one state but live in anpther state

[maw marsha]

i retired several years ago in Indiana through State of In. perf and have lived in alabama last 3 yrs but still have taxes withheld from indiana ...my question is do i file for alabama and indiana state taxes and if so how since i didnt work in either

[Hal_Al]

As a resident of AL, you must file an AL return and pay AL tax on all your income, except  exempt income. 

You do not file an IN return, except to get a refund.  That pension is not considered IN source income.  You should file back year IN returns (or amended returns) to get the IN withholding refunded.  For the year you moved, you shoulda filed part year resident returns for both states. 

This is the way it works in all states.

[JillS56]

Yes, you will need to file an Indiana return if you have withholdings for Indiana.  You would file as a non-resident and should receive a complete refund of the Indiana withholdings.   My suggestion would be to contact whoever manages the State of Indiana retirement and have them stop withholding taxes for Indiana from your pension. 

Alabama does not have income tax on pension income.   If the only income you have is your pension income, you will not need to file an Alabama return.   

[JillS56]

Yes, this would be the way it is handled in most states.   If you have withholdings for a specific state on your 1099-R the only way you are going to get the withholdings back is to file a return.   You do not owe the State of Indiana taxes if you do not live or work in Indiana.   

If you prepare a federal return and select your state as Alabama, TurboTax will automatically carry all federal information over to Alabama.   Normally, if you do not have income to report and do not owe taxes, you do not need to file a return. 

When working in TurboTax, enter the information for Indiana first and then Alabama.    The rule of thumb is to enter the non-resident state first and then the resident state.