My family moved from state A to state B permanently in the middle of the year. Our income was not evenly distributed over the year. The bonus part was distributed at the beginning of the year. That means the cash in flow was a lot more when we lived in state A.
When file state tax return, should we split the income half and half between these two states? Similar question for stock transaction gain and loss.
Thank you!
Individual states have unique filing requirements for moves such as yours. Without knowing what state A is and state B is your question "When file state tax return, should we split the income half and half between these two states? Similar question for stock transaction gain and loss" it is not possible to provide you with a specific answer to your question. Please reply to this post with the state you moved from and the state you moved to.
LeonardS is correct, we can give you a better answer if we know what the states are. The allocation procedure, in the software, can also be different, depending on the state.
That said, the generic answer is: you allocate the income to state you were living in when you received the income. So, the bonus gets allocated to State A.