what was the date of distribution? not the date you received it.
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
Distribution date and received date are the same 12-1-2021. (account transfer)
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.
On Line 48 of the IA 1040 you will enter the part-year resident credit that you calculated on the IA 126.
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.