In 2012, I took a "non-qualified" premature distribution from a retirement plan. I realize that this is taxable on the federal level, and I have paid the federal taxes on it.
I received the funds from the distribution in March 2012 - at this time I was a resident of South Dakota (no state income tax.) All of those funds were earned while I was working living and working in SD.
I moved to and established residence in the state of California at the beginning of May 2012. This qualifies me as a part-year California resident. I did file the part-year resident version of the California tax return for 2012.
Today, I received a Proposed Assessment from the CA Franchise Tax Board claiming that I owe taxes on the premature distribution. Considering that the funds were paid to me while I was a resident of SD, doesn't that mean that I don't owe any CA taxes on that money? I do have copies of documentation showing my lease in CA starting in May of 2012 and can provide this in my protest.