Moving from Washington to Oregon
Have a client moving from Oregon to Washington in May of next year. They have to take out money from an IRA in January, when they will still live in Oregon. Can they avoid Oregon state income tax on this withdrawal as long as they are residents of Washington for six months and one day, or are they stuck paying Oregon state income tax due to living in Oregon when they make the withdrawal?
Permalink Submitted by David Mertz on Wed, 2023-07-19 02:03
The distribution is taxable income in the state in which they reside at the time of the distribution. In this case, the distribution in January would be Oregon taxable income.