Question

Inherited IRA from a different state

Forum|Forum|5 years ago
February 12, 2021
1 reply
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My wife inherited an IRA from my father-in-law, who died in 2020. He lived in New York State. We live in Virginia. The distribution included withholdings of federal and state taxes. Do I need to fill out a non-resident tax form for NYS? And how would that impact my Va. state tax?

G

gloriah5200

The only way to get a refund of taxes withheld for any state is to file a return showing no income with taxes withheld.

Yes, you will need to file a NYS return to get a refund of any NY state taxes withheld in your name.

If that was the only income received from NY and you had no state taxes withheld, then you would not be required to file a NY state return since IRA or retirement income is considered received from the state of your residence.

If you have to file a NYstate return to get a refund of NY state taxes withheld and not showing any NY state income, then it should not affect your VA state tax return except, you will have to claim the IRA distribution on your VA return along with all your other income received.