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Career Path => Money Matters => Tax Q&A => Topic started by: UncaBuffalo on Mar 31, 2012, 11:41

Title: State "Part-Year Resident" Tax
Post by: UncaBuffalo on Mar 31, 2012, 11:41
Okay, I'm trying to finish my taxes and the state I'm a resident of now is asking me to list the amounts I made while a resident of their state.  Easy enough for wages or unemployment, because I know where I was a resident when I got paid each.  However, how do I calculate things like interest income, dividend income, capital gains, and IRA distributions?  Generally all I have is an end-of-year statement.  Can I just divide by 12 (months in a year) and multiply by the months I was resident in the state, or...?

Note:  I am especially focused on the IRA distributions, because I rolled a bunch over from traditional to Roth...  I don't want to pay more state tax than necessary...but also don't want to fail to pay taxes I owe.  The state is listed in boxes 13 & 14 of the 1099-R, so am I required to claim the entire amount in that state?

Thanks!  :)
Title: Re: State "Part-Year Resident" Tax
Post by: UncaBuffalo on Apr 02, 2012, 01:56
Quote from: UncaBuffalo on Mar 31, 2012, 11:41
Okay, I'm trying to finish my taxes and the state I'm a resident of now is asking me to list the amounts I made while a resident of their state.  Easy enough for wages or unemployment, because I know where I was a resident when I got paid each.  However, how do I calculate things like interest income, dividend income, capital gains, and IRA distributions?  Generally all I have is an end-of-year statement.  Can I just divide by 12 (months in a year) and multiply by the months I was resident in the state, or...?

Note:  I am especially focused on the IRA distributions, because I rolled a bunch over from traditional to Roth...  I don't want to pay more state tax than necessary...but also don't want to fail to pay taxes I owe.  The state is listed in boxes 13 & 14 of the 1099-R, so am I required to claim the entire amount in that state?

Thanks!  :)

Okay, I've been digging around for an answer and came up with conflicting info...or at least info that differs from state to state...

In New York, you have to pay on the entire amount that you transferred while you were resident.  In Iowa, you pay a pro-rated amount based on the ratio I mentioned in the original post.

Does anyone know how it works in Idaho...I can't find it...

Thanks again!  :)
Title: Re: State "Part-Year Resident" Tax
Post by: UncaBuffalo on Apr 02, 2012, 04:52
I think I finally gave up and decided that Idaho expects me to pay on the entire conversion...which is a bad thing, since they are a 7+% state...   :o

So, time to recharacterize a bunch of that money back to traditional IRA...   :(

If anyone thinks they have a better idea, shoot it at me quick...I need to throw these silly tax forms and such in the mail before Thursday...because then it's....

TRAVEL TIME!  :)
http://www.nukeworker.com/forum/index.php/topic,52.msg158249.html#msg158249
Title: Re: State "Part-Year Resident" Tax
Post by: surf50 on Apr 02, 2012, 09:50
http://adminrules.idaho.gov/rules/current/35/0101.pdf
Check out page 52 and 60-62, it might help clarify.
The Idaho Tax helpline is 800-972-7660 and the e-mail is taxrep@tax.idaho.gov
I'm no expert but I'd certainly give them a shout before re-characterizing your IRA.
( I'm sure you've found this info out yourself, but in the small chance you haven't..)
Title: Re: State "Part-Year Resident" Tax
Post by: UncaBuffalo on Apr 03, 2012, 01:16
Quote from: surf50 on Apr 02, 2012, 09:50
http://adminrules.idaho.gov/rules/current/35/0101.pdf
Check out page 52 and 60-62, it might help clarify.
The Idaho Tax helpline is 800-972-7660 and the e-mail is taxrep@tax.idaho.gov
I'm no expert but I'd certainly give them a shout before re-characterizing your IRA.
( I'm sure you've found this info out yourself, but in the small chance you haven't..)

That's the rules that I used to ratio the pass-through stuff, but I couldn't make it stretch to the IRA...much as I'd like to!  ;)

I'll definitely give the helpline a call.  Thanks so much for the help and ideas!  :)
Title: Re: State "Part-Year Resident" Tax
Post by: UncaBuffalo on Apr 23, 2012, 10:18
Quote from: surf50 on Apr 02, 2012, 09:50
... and the e-mail is taxrep@tax.idaho.gov
I'm no expert but I'd certainly give them a shout before re-characterizing your IRA.

WOO-HOO!  I shot the taxrep an email and he said, "No worries.  Just pro-rate the conversion for the portion of the year you were in Idaho!"  :)   :)   :)   :)

THANKS!!!
Title: Re: State "Part-Year Resident" Tax
Post by: peteshonkwiler on Apr 24, 2012, 07:54
I hope they don't share your tax information with the other states in which you worked.  You might have to do the pro rate thing for them also.
Title: Re: State "Part-Year Resident" Tax
Post by: UncaBuffalo on Apr 24, 2012, 10:37
Quote from: peteshonkwiler on Apr 24, 2012, 07:54
I hope they don't share your tax information with the other states in which you worked.  You might have to do the pro rate thing for them also.

Not a problem...the other state doesn't do income tax...  :)
Title: Re: State "Part-Year Resident" Tax
Post by: surf50 on Apr 28, 2012, 01:40
Quote
THANKS!!!

Glad I could help; I'd just finished doing my own ID state taxes and the stuff was fresh in my head.