Are IRAs fully taxable in Alabama if coming from Pennsylvania, where they are not taxable?
My mom moved from PA to AL in 2024, She has IRAs that were funded in PA, and are not taxable in PA. Are they now fully taxable to AL or do they have a basis and just subsequent earnings will be taxable to AL?
Answers
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Distributions from your mom's retirement will be taxed per AL state tax rates without considering any basis, earnings or previous state residence. The only consideration might be how much is taxable based on how long she lived in AL vs PA this year.
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can you tell me the maximum amount of long term capital gains before subject to tax.
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Long-term capital gains brackets are:
Tax rate
Single
Married filing jointly
Married filing separately
Head of household
0%
$0 to $47,025
$0 to $94,050
$0 to $47,025
$0 to $63,000
15%
$47,026 to $518,900
$94,051 to $583,750
$47,026 to $291,850
$63,001 to $551,350
20%
$518,901 or more
$583,751 or more
$291,851 or more
$551,351 or more
Capital gains are stacked on top of your income so your income + the gains are considered to determine your placement in the bracket above.
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Hi debindaphne,
I hope you got your answer from the posts. As your mother gets distributions from retirement account in PA it will be taxed in Alabama and she loses that benefit that PA would give her.
