Retirement check new amount for estimated taxes

[aw0manonthemove]

My new gross amount on my retirement check is about $40 more for cost-of-living.  Would this new amount be used on January 15, 2022 estimated taxes here in PA?  Or would I continue to pay the $279.00 for the January 15th, 2022 payment or the new amount of estimated taxes be based off of the new gross amount that has been started already would go on my July 30th retirement check from MD?

Am I eligible for any deductions concerning my move from MD to PA?

[dclick]

These are some excellent questions, and I appreciate you reaching out to us!

As long as your estimated payments equal either 100% of your prior year tax liability or 90% of the current tax year liability, you will not be subject to an underpayment penalty. So this will not likely drive an adjustment that requires you to adjust the estimated payments you are making.

As far as moving expenses and deductions associated with them, they are no longer federally deductible except as part of a military move. We have an excellent article on the topic here.

Pennsylvania does have a state level credit, but it only applies to unreimbursed expenses associated with a move for purposes of a new employer in the state:

https://revenue-pa.custhelp.com/app/answers/detail/a_id/1365/~/can-i-deduct-my-moving-expenses-if-i-...

I hope this helps make your planning a little bit easier!

[AndreaD_CPA]

I assume you moved from Maryland to Pennsylvania during 2021.

Withdrawals from retirement accounts are generally not taxable in Pennsylvania.  The code on Form 1099-R determines whether your 401(k) withdrawal is taxable to Pennsylvania. However, if you retired after 59 ½ and your 401(k) is an eligible plan, it should be tax exempt.

The moving expense deduction has been suspended for tax years 2018 through 2025 as a result of the Tax Cuts and Jobs Act that was signed into law in late December of 2017.

[aw0manonthemove]

Yes, I moved from MD to PA on April 15, 2021.  My retirement check is considered taxable due exempt code 7 with the fact I was deemed in August 16, 2016 with ordinary disability due to my psychiatric illnesses.  I would not be eligible for the original retirement age & I never created a 401 K plan for this decision.