State tax on RMDs
Hello! I have a client whose primary residence is NY, but she is now living in VA (still owns a home in NY). She is considering making VA her primary, but is concerned that her RMD would be taxed ifor both NY and VA. Any guidance on this?
Permalink Submitted by Alan - IRA critic on Thu, 2023-05-04 01:06
Client will need to be thorough to establish VA residency because NYS has aggressive rules for eliminating NYS residence and thereby NYS taxes. If done correctly, the RMDs taken while still a NYS resident will be taxable in NYS but those distributions taken afterwards will only be taxable in VA. Since RMDs can be taken anytime in the year she moves, she has control over when these RMDs are taken. NYS provides a 20k income exclusion which she should be claiming. Not sure if that is pro rated for a part year resident.