TP moved to CA from TX in May of 2016. Took total distribution from his IRA while still living in TX where there is no state tax. Moved to CA in May. Does he need to pay CA tax on the distribution he actually took while still living in TX? In other words, is the distribution considered taxable for the time he lived in CA even though he actually received it while still living in TX?
-
-
when doing more than one state you need to find out when income was received as resident. looks like income from IRA was received while a resident of Texas. -
No. It should become very clear to you when you complete California Schedule CA (540NR), especially column (e) of that form. There are also separate instructions for that form.Originally posted by manyhappyreturns
The back-out does NOT go in column (b). Columns (b) and (c) are used to make adjustments from federal taxable income to California taxable income. Column (e) is the one where you enter the amounts in column (d) that are taxable by California. Columns (d) and (e) only appear on the NR version of that form.
P.S. I always enjoy seeing your screen name. Very clever.Roland Slugg
"I do what I can."Comment
-
It is Texas income
If he was a resident of TX when he got the check it is TX income.Comment
-
Also you have to be careful of the state rules where the taxpayer is resident. For example in MA there is no deduction for trad. IRA contribution so distributions received are principal first (no MA tax) and then earnings (MA taxed).Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
Comment