Skip to main content
Level 2
December 1, 2022
Question

Will I need to file state taxes in my former state of residence for a bonus I will receive next year in my new state of residence?

  • December 1, 2022
  • 2 replies
  • 23 views

I retired from my job in Minnesota and moved to Indiana during 2022. I have not worked in Indiana but my wife does and will continue to work only in Indiana going forward. I understand that we will need to file taxes as part-year residents in both states for tax year 2022.  I will receive a bonus next Spring '23 and a lump sum supplemental pension (non-qualified) next Fall '23 related to work I did in Minnesota in 2022 and prior years in the case of the supplemental pension payment.  We will be a full year residents of Indiana in 2023 and neither my wife or I will have done work for a Minnesota company during 2023. Will I need to file taxes in Minnesota for tax year 2023 as a result of the bonus and pension payment received in 2023 while residents of Indiana? 

2 replies

Alumni - Champ
December 1, 2022

Yes, you will have to file a non-resident MN tax return for 2023.  MN taxes non-residents on bonuses earned for services performed in, or income earned in, Minnesota.  MN also taxes income from non-qualified plans (such as stock options) earned in Minnesota.

https://www.revenue.state.mn.us/how-minnesota-taxes-nonresident-income

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
DLAIIAuthor
Level 2
December 1, 2022

Thank you, Tom!