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Level 1
posted Feb 21, 2021 1:10:00 PM

Taxable amount on IRA distribution NJ

I currently live in NJ. Several years ago, when living in PA, I contributed to my employer's 401k and my contributions were taxed in PA.  When I left, I did a rollover to a traditional IRA.

When I take a distribution from the IRA this year, can I adjust the taxable amount for the amount that was already taxed, even though it was taxed in another state?

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1 Replies
Expert Alumni
Feb 21, 2021 1:31:16 PM

No, states determine taxable income based on federal income, and then make adjustments to that to determine state tax.  Unless your state specifically has an adjustment to income for that, you can't adjust your taxable income for it.