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Will my retirement payments be taxed in my employer's state if I move to another state?



Will my retirement payments be taxed in my employer's state if I move to another state?


No, retirement plan payments will be taxed in the state where you are a resident. Generally, you are a resident of the place that you definitively intend to return to whenever you are away.


During the year that you move, you'll pay taxes in your old state on the retirement payments made while a resident of the old state. The rest of the payments will be taxed to your new state.


Retirement payments are different than income from your job. Generally, salary wages will be taxed in the state where the business is located. Receipts from the sale of services or goods will be taxed in the state where the services are performed, where the good is used, where the customer ordered from, or where the customer's billing address is.

© 2020 by Dennis C. Carroll, Esq.