I received severance pay in 2017, is it taxable in New Jersey

toma731 · ‎June 4, 2019

I was downsized on Dec 31 2016 and I received severance pay, vacation pay and bonus in 2017. I s the severance pay taxable in NJ. A coworkers accountant told him no and I think that it is

MaryK1 · ‎June 4, 2019

Yes, if you worked in New Jersey, it would be considered NJ taxable wages even if you received it after you moved out of the state. See page 17 and 18 at http://www.state.nj.us/treasury/taxation/pdf/current/1040nri.pdf

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MaryK1 · ‎June 4, 2019

Yes, if you worked in New Jersey, it would be considered NJ taxable wages even if you received it after you moved out of the state. See page 17 and 18 at http://www.state.nj.us/treasury/taxation/pdf/current/1040nri.pdf

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bteufel · ‎July 24, 2019

I've read pages 17-18 multiple times but not seeing the justification for taxing the severance. Can you please cite the exact part you are speaking about?

TomD8 · ‎July 24, 2019

@MaryK1's answer is correct.

Here's the NJ law stating that income earned for services performed in NJ is taxable by NJ, even if you are a non-resident at the time you receive it: https://law.justia.com/codes/new-jersey/2009/title-54a/section-54a-5/54a-5-8

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

I received severance pay in 2017, is it taxable in New Jersey