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gillilkc
New Member

How do I pay non-resident state taxes on 1099-R if I live in a different state?

I worked in state B in 2015. I lived and worked solely in state A for 2016. I got a "close out your 401k because you no longer work here" 1099-R form. I cashed that money so how do I pay State B taxes on that if I no longer live there.
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DS30
New Member

How do I pay non-resident state taxes on 1099-R if I live in a different state?

You will not owe any nonresident state income tax on your 1099-R distribution from a nonresident state.

You will only have to pay state taxes on this retirement income in your state of residence when you received the payments regardless of the state where the retirement income was earned or contributions made.

On Jan. 10, 1996, P.L. 104-95 took effect. This federal law prohibits any state from taxing pension income of non-residents, even if the pension was earned within the state

In order to get the full refund of any nonresident state income tax withholdings, you will need to file a nonresident return but report zero "0" income from the nonresident state. You must mail in this nonresident state income tax return and include your state information. You will want to include an explanatory statement with your nonresident state income return stating your situation (that your 1099-R administrator withheld nonresident state income taxes from your 1099-R in error due to Federal law P.L. 104-95).

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