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srj1111
Level 2

Taxing Retirement income in two separate states.

If you move from one state to another, do both states tax your retirement income? Or are you taxed only by the state that you're a primary resident?  Thanks

1 Best answer

Accepted Solutions
jepperson
Employee Tax Expert

Taxing Retirement income in two separate states.

If you moved to a new state during the tax year, you'll normally file a part-year return for each state you lived in during the year, assuming the state(s) collect income tax. You will assign the income to the state you were living in when you received it. We'll either ask you to separate the income you earned or to verify the allocation amounts we already calculated for you.

 

Allocating your income shouldn’t be too difficult, but it can involve some math.  Retirement income is considered Unearned Income.  An easy allocation method is to divide the year's interest by 12, and then multiply the figure by the number of months you lived in each state.

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1 Reply
jepperson
Employee Tax Expert

Taxing Retirement income in two separate states.

If you moved to a new state during the tax year, you'll normally file a part-year return for each state you lived in during the year, assuming the state(s) collect income tax. You will assign the income to the state you were living in when you received it. We'll either ask you to separate the income you earned or to verify the allocation amounts we already calculated for you.

 

Allocating your income shouldn’t be too difficult, but it can involve some math.  Retirement income is considered Unearned Income.  An easy allocation method is to divide the year's interest by 12, and then multiply the figure by the number of months you lived in each state.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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