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State tax filing
It depends on the state you moved to.
Generally, you will pay tax in your resident state on all of your income and also in the state the income was sourced. To avoid double taxation on the same income, you will get a credit of taxes paid in your resident state. In your situation, you would file a nonresident return in NJ which would show the bonus as taxable and a resident return in your current state where all of your income is taxable. It is best to complete the NJ return first, so that the credit of taxes paid is calculated correctly on your resident return. For detailed instructions, click here.
Please note: If you moved to Pennsylvania, you won't qualify for a credit for taxes paid to New Jersey. You would simply file a NJ return to get the withholding refunded back to you that was withheld from your bonus. In this case, you would allocate $0 as taxable to NJ. This is due to the reciprocal agreement between NJ and PA. Under this agreement, compensation paid to PA residents from NJ is not subject to NJ income tax.
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