@PKTaxMan --
Were the payment and withheld taxes reported to you on a W-2, or on a 1099? You would report the payment in the appropriate section of TurboTax.
Since the payment is derived from services you physically provided in Hawaii, Hawaii will consider it "Hawaii-source" income and therefore taxable by Hawaii, even though you are no longer a Hawaii resident. The fact that Hawaii taxes were withheld substantiates that the payer regards the payment as Hawaii-sourced. Hawaii can tax non-residents on "Hawaii-source" income.
Eligibility for the payment required the employee to be "be physically at work 420 days* or more during the period March 4, 2020 through March 25,2022." Thus the payment is derived from services physically performed within Hawaii (Hawaii-sourced).
https://www.hgea.org/Media/6562/summary-of-state-thp-offer-apr11-2024.pdf
If you received the payment after becoming a Utah resident, it is also taxable by Utah, since Utah taxes its residents on all income, regardless of source.
You will be able to claim an "other state credit" on your Utah return for the taxes paid to HI on that income. The credit prevents double taxation of that income, which is prohibited. You will need to file both a non-resident HI return and a resident UT tax return. In TurboTax, complete the non-resident state return first, before your home state return, so that the program can calculate and apply the credit.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
