My husband worked for this company 17 years and was made redundant in 2021 and paid a lump sum.
The last 9 years he has been in the uk working for this company but paid as an expat in USA dollars. thus he is a non resident of NYS the last 9 years.
kpmg filed our taxes and shows he is being taxed on all the days in the past 17 years he worked in NY. For example, the lump sum received in 2021, has him paying nys tax for the years 2004-2012…..
is this right? Why would the severance payment be backdated ? I would think he was paid a lump sum in 2021 and the income would be not eligible for nys tax as it was earned this year and we live in the uk.
they said they reduced US taxation on the severance payment by treating the severance payment as 100% foreign source income. however, could not do the same for NY purposes since they do not follow foreign treaty provisions
any insight would be helpful
