Question

Why am I paying two (2) state taxes on my 1099-R?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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I did live in 2 states for 2016 but the form says the tax state is MA

TurboTax Online

Employee

When you were a part year resident of two states, you income, including retirement income is allocated to each state based on where you were living when you received the income. So, for example, if you are receiving monthly retirement checks and lived in MA 4 months; one third of the 1099-R is allocated to MA and 2/3 to the other state. The fact that the 1099-R only says MA may complicate entering the info into TurboTax.

L

legal-lindsayAuthor

I took out a loan against my 401K back in 2011 and when I left my job earlier this year while living in MA I could not pay back the remainder of the loan.