If your bonus is considered to have been earned from a New Jersey (NJ) source you are required to file and pay tax to NJ.
- Form NJ-1040NR if you had income from New Jersey sources for the part of the year you were a nonresident (use the link to see the instructions and tax rate schedules are on page 43. This will allow you to see an approximate tax for the NJ return. The income for NJ is divided by the income for the year to arrive at the NJ amount.
Any money earned after the switch to the New York (NY) facility will be taxed only to NY. You will receive credit for taxes paid to another state on your NY return for the tax paid to NJ on the same income. Always do the tax return for the nonresident state first.
The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income. As the resident state all worldwide income must be included.
The credit for tax paid to another state on the same income will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
@JayHotspur
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