ToddL99
Expert Alumni

Retirement tax questions

Your employer is correct - you "earned" these bonuses while working in your former state of residence, even though they are being paid out after you moved to another state.

 

Whether and how the payments might be taxed by your former state of residence depends on the amount of the payments and your former state's tax laws.

 

"Incentive" payments and "bonus" payments would be treated the same for tax purposes - both are based on job performance.

 

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