IRA RMD DISTRIBUTION
I am required to take RMD IN 2022. I plan to move and become florida resident in may and take my RMD IN July 2022. i will be indiana resident till may 2022. will my RMD income has to pay indiana state tax? I assume income earned during january to may 2022 is only where i have to pay indiana state tax.
Permalink Submitted by Alan - IRA critic on Sat, 2022-01-01 16:02
That’s correct. Just be sure you have clearly established FL residency before your take your RMD. Get a FL DL, register any vehicles in FL, have all mail sent to new address. register to vote in FL, and show you FL address on your 2021 IN tax return.
Permalink Submitted by Bruce Steiner on Sun, 2022-01-02 01:48
In addition to the paperwork, you have to actually move.
Permalink Submitted by gautam SHAH on Sat, 2022-01-01 20:36
Thank you Alan. my 2021 tax return is due on april 15th 2021 and moving to FLORIDA in MAY 2021 will finish requirement by end of MAY 2021 how can i put florida address in APRIL 2021? SHOULD I FILE EXTENSION?
Permalink Submitted by Alan - IRA critic on Sat, 2022-01-01 21:19
Good point. It’s not worth the trouble to file an extension just for that. You will probably have to file a part year IN return for 2022, but you can probably download the part year return form and file it in early 2023. Forget about a special notification for the IN tax agency. You will probably file a change of address form with your old post office branch when you move if the state of IN sends you any mail.
Permalink Submitted by gautam SHAH on Sun, 2022-01-02 02:26
Thank you ALAN and BRUCE . I will physically move and fullfill all needed in MAY 2022. I am trying to limit income for firat 5 months to just social security and pension if i take RMD after moving and use personnal saving i can save significant state tax . can INDIANA claim state tax on income generated after june 2022 when i am FLORIDA RESIDENT? I f i wait till 2023 i have to take 2 RMD .
Permalink Submitted by Alan - IRA critic on Sun, 2022-01-02 17:06
On your IN part year return, you should only show income you received while an IN resident, so once you have clearly established FL residency, you could take your RMD and it would not be subject to IN tax.