Roth Conversion in a different state

Submitted by Joe Williams on Wed, 2018-03-21 03:24

I lived in CO last year until August 2017. In September 2017, I moved to WA where there is no state tax. I did a Roth Conversion in December 2017.

I thought since my Roth conversion was done in December 2017 when I lived in WA that there would be no state tax. But when I went to do my partial tax return for the months I lived in CO a tax is being charged for my Roth Conversion. Is that correct? I use Turbo Tax.

Thanks,

Joe

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Permalink Submitted by Alan - IRA critic on Wed, 2018-03-21 04:17

The CO tax is based on the proportion of total income that CO bears to the annual federal total. The result may not be identical to simply paying tax on all income up through 9/17, but it should not be far off. See this example and then check to see if your figures entered in turbo tax produce the same result.
https://www.colorado.gov/pacific/sites/default/files/Income6.pdf