I Moved From Pennsylvania to Virginia Mid-year. How Do I Report Dividends, Interest, and Capital Gains to Each State?

[TomInVA]

Hello,

I'm having a very hard time figuring out how to report state taxes.  I moved from Pennsylvania to Virginia on 9/28/24.  So, I was a resident of PA for 271 days (74% of the year) and a resident of VA for 26% of the year.  How do I report dividends, interest, and capital gains to each state?

Do I simply prorate the amounts for dividends, interest, and capital gains (regardless of when they were actually paid to me) according to how much time I spent in each state?  For example, $1,000 in dividends would be $670 for PA and $330 for VA?  Are PA and VA going to agree to this methodology?

What about these situations?

• I have a bank account which earned interest throughout 2024.  I know how much interest was paid in each month.  Do I calculate exactly how much interest was paid while I was in PA and then the same for VA?  Or do I simply prorate?
• I have a mutual fund which paid capital gains in the last week of 2024.  Do I prorate this according to how much time I spent in PA and in VA?  Or since the gains were actually paid when I was a resident of VA, does the entire gain get reported to VA state taxes and $0 reported to PA state taxes?
• I sold some stock for a gain on 4/30/24. Do I prorate the gain or...since I was a resident of PA at the time of the sale, does the entire gain get reported to PA state taxes and $0 reported to VA state taxes?

Thank you very much,

Tom

[AmyC · Accepted solution]

If you know the correct amount received in each state, use it. If there is an amount you don't know, prorating it is fine. As long as you can show good effort and a reasonable method.

• Dividends -should be able to track which state you lived in when received.
• Bank account interest- again, should be able to tell where you lived when received.
• Capital gains go to the state where you lived when the income was constructively received.
• Sold stock is also a capital gain and goes to the state where you lived when the stock was sold.

[TomInVA · Accepted solution]

Thank you, Amy!