Hello,
I lived in Massachusetts until May 2020, then I moved to Arizona, and obviously left my job in MA so I received the 1099-R total distribution form to my old address in MA which was forwarded to my new address in Arizona.
Question is, do I just enter it as is showing MA info in Boxes 14-16? Or should I contact Vanguard to get my address updated and get a new updated 1099-R form?
If you had Massachusetts withholding, you will want to enter so that you have the correct Mass taxes. Regardless, you should update the address with Vanguard but you will not get a corrected form for 2020. You can allocate the income to each state so the correct amount is reported.
Thank you for the reply, but how do I "allocate"? Do I just split the amount in half? How about tax, how do I know how much I put for each state?
were you getting monthly or quarterly distributions?
the allocation depends on where you were on those dates.
Did you get a lump sum? it all happened at once and all in one state or the other.
No. So this 1099-R is a total distribution, meaning that after I left my job, Vanguard paid me at a 10% penalty since I did not roll that money anywhere. So I just got one check of the full amount invested minus the 10%.
Does that make sense?
Where did you receive the distribution? Were you still living in MA or were you living in AZ? This will determine were you report the income from the distribution.
You will need to prepare a part-year return for MA for your income earned through May and then a part-year AZ return for the income earned from June through December. If you were a non-resident of MA at the time you received the distribution, the distribution would be taxed in AZ.
If distribution received as a MA resident, file part-year MA resident return and include distribution as income for MA. Tax amount in box 16 will offset MA tax.
If distribution received as AZ resident, include distribution on AZ part-year return and pay AZ tax. Tax amount in box 16 of 1099R will be refunded to you from part-year MA return.
We received the check and the form 1099R both at our Arizona address, but it was forwarded with US Post Office, as we forgot to update the address with Vanguard after we moved out of MA, so I am just not sure how to allocate or "guess" taxes.
If the 1099-R was from a retirement account at a job that you had in Massachusetts, then the entire amount would be Massachusetts income.
Hello and thank you again! So just leave it as Massachusetts even though TurboTax asks what state I was living in when received the form / payment?
Yes, just leave it as Massachusetts as it is income from Massachusetts.
If you are asking about retirement income reported on a Form 1099-R and received periodically through the year, you would allocate the total distribution proportionately to the time you lived in each state if you moved during the year.
Or, if you received a lump sum distribution, then it would be allocated to the state where you lived when you received the distribution.
If this did not answer your question, please add more details.