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New Member
posted Jun 4, 2019 9:52:01 PM

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

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

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1 Best answer
Level 9
Jun 4, 2019 9:52:04 PM

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


3 Replies
Level 9
Jun 4, 2019 9:52:04 PM

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


New Member
Jul 24, 2019 6:47:33 AM

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? 

Level 15
Jul 24, 2019 9:03:12 AM

@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