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Level 2
February 25, 2026
Question

Do I pay NYS tax if I received signing bonus a year before the new job start

  • February 25, 2026
  • 3 replies
  • 126 views

I lived in Miami for all of 2025. I received a sign‑on bonus for a new job in April 2025, but I won’t actually start the job until October 2026. The company has offices nationwide, and the contract does not specify the location. However, I plan to join their New York office once I begin working.

Their payroll system listed my work location as New York and withheld New York State tax from my signing bonus. Am I eligible for a refund?

3 replies

MaryK4
Level 15
February 25, 2026

You may be eligible for a refund, but if it is a New York company, you may be liable for New York income taxes regardless of work location under the "Convenience of the Employer" tax doctrine.  See section in Do I need to file a nonresident return for an out-of-state employer? and TSB-M-06(5)I:(5/06) - Tax.NY.gov.

 

You would have to evaluate the details of your specific situation to determine if this applies.  

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jingle123Author
Level 2
February 25, 2026

I don't think Convenience of the Employer should be applied to my case. I didn't not perform any work in New York during the year of 2025.

Level 15
February 25, 2026

When your work duties commence it appears you will be working in New York, so that may take precedent over your current job situation. It would be different if you were currently working remotely. But since the income is an advance on work you will be doing as a New York resident, it is likely New York income.

 

The normal primary considerations are if you have an office in New York that you work out of at least occasionally and does your employer require you to work from home? If the answer to both of these questions is "no" then you would have a case for your income not being taxable in New York. But that would likely only apply if you were actually working.

 

 

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