State Tax on Roth conversion while living in IL (no State Tax on conversion) for 6 months, and then moving to MN (state tax on conversion)

[Elvis-in-MN]

I am looking to do a big Roth conversion in March while I am still living in the state of IL.  IL state does not tax Roth conversions.

I will be moving to MN in June or July.  MN does collect MN state tax on Roth conversions.

If I do the Roth conversion while residing in IL (but will not live in IL for the full year), and then move to MN mid-year, will I have to pay MN state tax on the conversion?  Does it matter if I moved to MN in June, or if I move in July?  Can TurboTax handle this, or will I have to do a bunch of manual work with the tax authorities?

[AnnetteB6 · Accepted solution]

TurboTax should be able to handle this situation with some inputs from you when preparing your two state returns for 2026.

You will be filing a part-year resident return for two separate states.  Generally, when filing with this situation you are asked to allocate your income to each state.  You would allocate the income from the Roth IRA conversion to Illinois instead of Minnesota since the conversion will have been done while you lived in Illinois.  It does not matter when you move to Minnesota as long as the conversion is completed while living in Illinois.

If you do not receive any other Form 1099-R for the year, then this should be a simple process.  If other Form 1099-R distributions are involved it may be more complicated, but still can be handled.

For reference, here is a TurboTax help article to keep in mind when filing your 2026 returns:

How do I file a part-year state return?