Retired and moved in 2023

Forum|Forum|2 years ago
March 24, 2024
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We retired in early 2023 from Massachusetts. Moved to Florida. Took distributions from our IRA's while in both states. Everything I am reading says that distributions are taxed in state that they were received in. Using turbotax it is calculating ALL the distributions as income for Mass. This doesn't seem correct. Anyone have ideas about whether I am correct about this and how to fix in Turbotax?

DavidD66

You are correct. The IRA distributions you received while living in Massachusetts are taxable by MA. Those taken when you were are resident of Florida are not subject to state tax. You need to make an adjustment in the MA state return and subtract the amount of your distributions received while living in Florida from your income. You will come to a screen in the MA state return section of TurboTax that says "Non-Massachusetts Portion of Income". Below that there will be categories of income, one of which will be "IRA/Keogh Distributions". There will be the total for all states and a box for "Non-MA Portion". Enter the portion of your IRA distributions you received while a Florida resident. This will remove it from your MA return. See the screenshot below.

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lisamorehouseAuthor

Thanks for the response. I think you referencing the online version, I have the desktop version but I believe I have found the right form to enter this info. At least I am on the right track!