topic State Tax Question in State tax filing

State Tax Question

DQ1155 — Wed, 20 Jan 2021 22:02:40 GMT

I have lived in one state (GA) all of 2020 and worked for one company in 2020, based in GA. The company I worked for in 2019 in another state (NY) paid out a one time payment in February 2020 for 4Q'19 work (in NY). Since I lived in GA at the time of payment and did not work in NY in 2020, do I owe taxes in NY, or can I file a $0 income return in NY and recoup the withheld taxes?

Re: State Tax Question

Allthethings — Wed, 20 Jan 2021 22:38:32 GMT

Since you were paid in 2020, you will have to file a NY return with this income this year. Even though you actually did that work in 2019.

Re: State Tax Question

AlanT222 — Wed, 20 Jan 2021 23:00:41 GMT

A bonus that relates to work performance will be taxed in the location where the work was performed, regardless of when the bonus was paid.

You must file a nonresident NY state income tax return to report the portion of your income (the bonus) that is considered NY income.

If you have to report all of the income earned on your GA state income tax return, you will get a credit for the amount of tax you paid to the State of NY.