@TomD8 ,
I think it is the new Washington state employer that is paying the relocation bonus.
@kmeline
If it is the new employer that is paying the bonus, then I believe it will be taxable in Massachusetts if you receive it while you are still considered a resident of Massachusetts even though it is connected to work you will be doing in Washington. As such, if you can delay payment until after you move, that would make it no longer considered Mass income.
Be aware that the date you change your permanent residence (domicile) does not necessarily have to be the day you physically moved. It depends on all facts and circumstances. For example, a few years ago I relocated from New York to Virginia for a new job. I bought my VA home on June 15, I sold my NY home on June 25, I moved all my goods out of my NY home on June 24, moved my goods into my VA home on June 27, my last day of paid work in NY was June 30, my first paid day in VA was July 1, but from July 1-July 5 I was in New York, staying with relatives, to supervise the moving of some scientific equipment that was moving with me. I re-registered my car in VA, got a new drivers license, and registered to vote, all during the month of July. When did I officially change my residence from NY to VA? I think a fair argument could be made for some time between June 24 and June 27. Fortunately I was not audited by either state so I did not have to test the principal.
If the date you change your domicile is definitely going to be Feb 1, you might ask if the new employer can delay payment of the bonus until the February pay cycle. But there may be some flexibility in determining the date you "change your domicile."
