Do I have to pay state income taxes to NJ on severance payments even if I become a FL resident in January?

[trgina63]

I notified the previous employer that I was a FL resident, but they continued to withhold NJ State Income Tax on the monthly severance payments.  Am I entitled to file with NJ for a refund of the State Income tax paid to them?

[SweetieJean]

Jan of 2017, or Jan of 2018?

[SweetieJean · Accepted solution]

This is tricky, because NJ taxes nonresidents on payments received  "for services performed in New Jersey."  Specifically, severance pay is considered to be New Jersey source income, under N.J.S.A. 54A:5-8.

https://law.justia.com/codes/new-jersey/2009/title-54a/section-54a-5/54a-5-8

I suggest you call the NJ tax authority, and discuss it with them