state Taxes on IRA distribution IRA

[rodneyavey]

I became a South Dakota Resident on 11/22/2021.  SD does not have a state tax.  I received an IRA distribution on 12/1/2021. I this the distribution taxable in my former state (iowa) in 2021?

[Mike9241]

what was the date of distribution? not the date you received it. 

[TomD8]

The instructions for line 8, Taxable IRA Distributions, on the 2021 IA Form 126 "Iowa Non-resident and Part-year resident Credit Schedule" state:  "Report any taxable IRA distributions received while an Iowa Resident".

https://tax.iowa.gov/sites/default/files/2021-12/IA126%2841126%29.pdf

[rodneyavey]

Distribution date and received date are the same 12-1-2021. (account transfer)

[rodneyavey]

That line is used to calculate part year residents.  I did not include the IRA distribution here.

Any help with IA-1040 line 8. Taxable ITA distributions?  It does not identify residency.

Instruction say:

Taxable IRA Distributions
Line: 8
Step: 5
Step Subject: Gross Income
Enter the amount of taxable IRA distributions as shown on your federal return.

[TomD8 · Accepted solution]

On Line 48 of the IA 1040 you will enter the part-year resident credit that you calculated on the IA 126.

[rodneyavey]

That makes since and is what I did.  What brought up this questioning on which State gets to tax incomes when you are a part year resident.

The other issue that I have is that I also am a non resident of Kansas and file a tax return there on Kansas source income (Rents and Royalities).  Iowa disallowed the out of state tax credit as the income was received after I became a SD resident.  Ok, I understand that, but they did not remove the Kansas source income portion from my IA 1040.  So both Iowa and Kansas are both taxing the same income.  Any insight.  I am going to appeal this ruling.