I was a Wisconsin resident in 2020 when I took a Cares Act withdrawal of both my IRA and Pensions and Annuities (as defined by TT). I claimed the 1/3rd process and claimed Wisconsin as my state in 2020.
In September 2021 I moved to Illinois. Does it matter which state I choose to record the second third of income? When I choose Wisconsin, the penalty is much higher than Illinois.
FYI: I remained a resident of Illinois for the remainder of 2021.
I suspect that Wisconsin would argue that since you were a Wisconsin resident when you received the distribution, the second and third portions are also Wisconsin income.
It sounds like you are filing part-year resident Wisconsin and part-year resident Illinois tax returns for 2021.
In 2022 you would report the income on a non-resident Wisconsin tax return.
See also here.
I suspect that Wisconsin would argue that since you were a Wisconsin resident when you received the distribution, the second and third portions are also Wisconsin income.
It sounds like you are filing part-year resident Wisconsin and part-year resident Illinois tax returns for 2021.
In 2022 you would report the income on a non-resident Wisconsin tax return.
See also here.