NM preparer

[DTS]

I have PY CA & NM retired t/p. In her return is a distribution from an IRA. The allocation is carrying to CA, but not to NM. Shouldn't this be carrying to the NM return? I'm wondering if the fact she is PY-NM (5 months), it may not need to be included, but that does not seem correct to me.

Can you clarify this for me? I will manually make the allocation, if need be.

Thank you,

Dennis

[S T]

Question

1. Was she receiving the distribution monthly?

If receiving distribtuion amount monthly then pro rate to Calif and NM

2. Did she receive just one distribution amount?

If she received the distribution while a Calif Resident, allocate all to Calif.

If she received the distribtuion while a NM Resident, allocate all to NM

Sandy

[DTS]

Nm

Thanks Sandy,

I will call her tomorrow and find this out. I'm hoping I don't have to allocate all to NM as her overall state balances due is lower with the smaller amount going to NM.

Thanks, again.

Dennis

[S T]

1099R form

Dennis,

What does the 1099R form show as the State distribtuion.

They are not always correct on a move to another State. But that might aide you as well.
Check with the client to see as well when she received the funds and what State she was in.

Sandy

[DTS]

State dist.

There is no state or distribution for state listed. I will call her in the morning and find out.

Dennis

[FEDUKE404]

State assignments

I encounter this type of situation all of the time.

Generally speaking, if it is an IRA/annnuity type distribution it probably was a one-time event. Find out where the client was living at the time of payment, and assign accordingly.

If it is a pension plan or whatever, you pretty well have to draw a (time) line in the sand and figure out how much of the total payments went to each individual state.

As for getting any useful information from the "state" box of the Form 1099-R, that frequently is left blank. The real problem occurs if a lot of state withholding occurs for state A and no state withholding occurs for state B. Even worse is state withholding that was paid to a "prior" state (not relevant to any 2007 residency) and then you have to file a doggone zero-income return just to get the tax refunded.....or sometimes if zero state withholding endure a letter from the state wondering why you did not report the income.

Regardless, you probably will need to discuss the matter with the client to obtain all of the relevant details.

FE

[DTS]

Fe

I spoke with the client yesterday morning and she is receiving quarterly payments. I wound allocating to the days in each state, which was the best way to do it I believe, as the payments did not coincide perfectly.

The program allocated fine to CA, but not NM, which I thought may be due to the fact that she was not in that state for 6 months. Anyway, I just made the manual entry to NM.

It's on it way to NM!

Thanks,

Dennis