Moving to new state during tax year

[TamTK]

My retired parents moved from CA to AZ during 2023. My dad's 1099-R for his retirement from a private company lists the state distribution amounts for each state along with the payer's state no. in boxes 15 & 16 (no state or federal taxes are withheld).

My mom gets a pension from the State of CA and has federal and CA state taxes deducted (no state taxes will be withheld in 2024). Her 1099-R has the information for CA only listed in boxes 14 & 15, with nothing in box 16.

Should I split the amount of the gross distribution in box 1 between both states using their move date to determine the appropriate figure and enter this is box 16? If so, would I use the payer's state no. listed for AZ from my dad's 1099-R and enter that same number on my mom’s 1099-R or leave box 15 payer's state no. blank for AZ?

[AnnetteB6 · Accepted solution]

You should enter the Form 1099-R just as they were received without trying to calculate each state portion.  

As you go through each part-year resident state tax return you will be asked to allocate income based on the time of residency.  This is where you will divide the total retirement income shown on the Federal return and allocate a portion to each state.  

[TamTK]

AnnetteB6,

Thank you for your help!! I was able to complete my parent's tax return.

TamTK