Solved: Company worked for was bought and we reciived w-2 for lump sum years pay in Wyoming. Was living in AZ when we received the check. Do we have to pay AZ taxes on this?
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tracyn6482
New Member

Company worked for was bought and we reciived w-2 for lump sum years pay in Wyoming. Was living in AZ when we received the check. Do we have to pay AZ taxes on this?

"My husband received a years pay in a lump sum when he his employer sold the company and the new company offered early retirement in Wyoming. He had several months of vacation to use and received the lump sum after we had moved to AZ. Do we have to pay AZ state taxes on this income?"
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DS30
New Member

Company worked for was bought and we reciived w-2 for lump sum years pay in Wyoming. Was living in AZ when we received the check. Do we have to pay AZ taxes on this?

It depends -

No - If you were in AZ on a temporary basis (like a vacation even if for several months) when you received the distribution, then this would not be considered AZ sourced income and no AX return would be filed related to this distribution.

Yes -  if you made a permanent move to AZ and received the distribution after you made the move, this this would be considered AZ sourced income and you would need to include this distribution on a AZ state income tax return.

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1 Reply
DS30
New Member

Company worked for was bought and we reciived w-2 for lump sum years pay in Wyoming. Was living in AZ when we received the check. Do we have to pay AZ taxes on this?

It depends -

No - If you were in AZ on a temporary basis (like a vacation even if for several months) when you received the distribution, then this would not be considered AZ sourced income and no AX return would be filed related to this distribution.

Yes -  if you made a permanent move to AZ and received the distribution after you made the move, this this would be considered AZ sourced income and you would need to include this distribution on a AZ state income tax return.

View solution in original post

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