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March 9, 2025
Question

1099-R distribution code 4

  • March 9, 2025
  • 1 reply
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my wife receives a 1099-R with distribtuion code 4 from state"A".  Her previous husband passed away as a police officcer in state "A" and she gets a monthly amount sent to her, summarized in this 1099-R.  We live in state "B".  i am presuming this is not taxable in "A" (there is no state withholding, only federal) but how do i find out if it is taxable on the state "B" return we file?  Thank you.

 

 

 

1 reply

March 9, 2025

SCOTUS has ruled only the state where the taxpayer resides can tax a retirement distribution earned in a different state. However, you need to file in that sate to get back any state withholding. 

March 9, 2025

thank you...so just to confirm, you are saying the distribution  IS taxable in state B, the state we reside, correct??

March 9, 2025

Yes, you are correct.

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