Hello Alanta Tax Expert,

I was living and working in NY on an H1-B visa until the middle of 2007. I have left the US since then. Last year, I withdrew money from my 401K account. I am currently 30 years old. I have some questions regarding tax return for 2009.

1) I just want to confirm the full amount I withdrew is included in the taxable income at the federal level.
2) Do I need to pay New York state tax on the amount I have withdrew? I haven't returned to NY since I left except for a week.
3) If I need to pay New York state tax, then I will be late in filing my tax return for the state. Do you have any suggestion on how I can reduce the late fee?

Tom

1) Yes, the full amount IS taxable at the federal level.

2) No NY state tax is due.

Atlanta Tax Expert:

Thank you very much for your help! On question 2, I have seen cases where you said state tax would be due. Can you tell me why the state tax is not due in this case please?

Thanks!
Tom