qbteachmt
Level 15

"Should he file a non-resident Maryland return and pay tax on the second installment of the distribution and exclude it from VA?"

Have you looked into the requirements? Some States want you to list everything, then they give a credit back for tax paid to other States. Some States tax everything for the resident, no matter where it is from. Some States will tax retirement not originating in their State. Some States have minimum exclusions. Some don't.

You have to look up what applies for your taxpayer.

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