Bonus income - earned in previous state?

[lzo]

Hello -

Moved from a non-state-income-tax state to a state-income-tax middle of the year last year 2024.

A big part of our compensation at work is in the form of bonuses.  They're paid mid-way through the following quarter.

I moved states middle of July.  My bonus for April, May, and June was paid out in August.

Let's say my total W2 income for the new state was $100,000, but $15,000 of that was the bonus FOR the previous 3 months, just paid out after i moved

If I understand the way the process works, the question "How much of the $100,000 did you earn while living or working in state-x" -- I'd be able to honestly put $85,000, right?  Because the bonus was paid out after I moved, but for the time period prior to the move?

want to make sure i'm doing this the honest way.  the income, while paid after i made the move, was 'earned' prior to the move

[Vanessa A]

I'd be able to honestly put $85,000, right?  Yes, generally, the income is taxed in the state it is earned so it was earned in your non tax tax it would generally be considered income from your non tax state.  However, all states have different laws so which state do you live in now?

[lzo]

New Jersey currently

In hindsight, there were some things I did that were just ignorant - as an example, the week after I moved, I sold some stocks, so now I'm paying the capital gains on both the federal AND state taxes.  If I'd been smarter, I would have sold them prior to moving so I wouldn't have to pay state income taxes.  But even though they're stocks that accumulated in value over the last few years, I understand that the fact I sold them DAYS after moving, I have to claim the full capital gain for my New Jersey taxes.

That part I understand, and makes sense - but the work bonuses I want to be sure I'm doing correctly

[lzo]

And the work bonuses, I should add, are truly for the previous quarter

As in, even if I quit my job on July 1st, I would still get the bonus paid in August for the work done April, May and June.

[ThomasM125]

You are correct regarding the bonus, that income should be allocated to the state in which it as earned, even if you received it while living in another state.