Solved: 1099-R Multiple State Payer's Listed

mysanity88 · ‎12-06-2019

I have a 1099-R (distribution code 7). Box 13 listed two states: Alabama and Indiana. Box 14 also split the total from box 1. There is no withholding for either state or local tax (box 12/15). State of residency is Indiana since 2015, lived Alabama for a few years before. Furthermore, the previous year's 1099-R showed just AL in box 13.

Would there be a need to file an AL return for any reason? I have not ran into this occurrence before. According to P.L. 104-95, such distributions are taxed in the state of residence, so the only reason to file a non-resident return would be for any withholding? But, there was no withholding in this case.

Skylane · ‎12-06-2019

Tell you client to call the pension company and correct their records for the future. I don't think I do anything special because AL is not the state of residence. Your client will be able to show where he is living and paying taxes if there is ever a question.

If at first you don’t succeed…..find a workaround

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Skylane · ‎12-06-2019

Tell you client to call the pension company and correct their records for the future. I don't think I do anything special because AL is not the state of residence. Your client will be able to show where he is living and paying taxes if there is ever a question.

If at first you don’t succeed…..find a workaround

mysanity88 · ‎12-06-2019

We will be contacting the company soon. I agree it is an issue stemming from the pension company. Thanks for the help!

George4Tacks · ‎12-06-2019

I had a client that maintain the CA residency on one 1099R for years, as he got an insurance plan. Unfortunately there was zero income, but that wonderful client had CA withholding. I filed each year zero income and withholding and always had to respond to correspondence.

In your care it sounds like income is being reported. Talk with the client to get that corrected. If they can get a corrected 1099R for 2018 that will make life easier for both of you. If they can not, you need to decide if AL will come after the client if you do not file.

Here's wishing you many Happy Returns

1099-R Multiple State Payer's Listed

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