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Level 4

Moved but continued to get paid from my old job

I have a question regarding income earned in one location while living in another.  I moved from my Job in NYC to my parents house in MA and then to a new job in CA.  I had significant vacation so I continued to get paid from my job in NYC while in MA and after I moved to CA.  I also got a significant bonus that was paid after I move to CA.  NY and NYC  taxes were taken out even though when I was paid (income earned?) I was not a NY resident and had already given up my apartment in NY.  I thought income is earned when received and I should pay taxes to the place I was resident/domicile at the time I was paid.

Even though I was only in MA for a month would I be considered a resident in this case?  Are there clear rules how to handle this income?

2 Replies
Level 18

Moved but continued to get paid from my old job

see this 

https://www.tax.ny.gov/pdf/advisory_opinions/income/a00_7i.pdf

 

read it all but especially the last paragraph on page 3 and also page 4

 

my conclusion would be that since the payments are for past services they would be tax in NY and NYC.

 

as to MA.  it would seem you did not establish a permanent place of abode while there.  It appears to be of a temporary nature,   as such you would be a non-resident and would pay tax only on MA source income.  What you got from the NY company is nor MA source income.

 

 

it would seem that when you move to CA you intended that to be your new domicile.

 

you may want to read these articles

 

https://www.differencebetween.com/difference-between-domicile-and-vs-residence/

https://www.mass.gov/service-details/learn-about-legal-and-residency-status-in-massachusetts

https://www.mass.gov/technical-information-release/tir-95-7-change-in-the-definition-of-resident-for...

https://www.mass.gov/letter-ruling/letter-ruling-09-5-residency

 

  

Level 4

Moved but continued to get paid from my old job

Thank you for the response. This answers one question but leaves two to be answered.  Clearly since these payments are for "past services" they are fully taxable by NY State per what you sent. 

 

Unlike the State, NY City tax depends solely on residency (i.e. if you live outside NY city you do not pay city tax even if you work in the city).  So since I was not a resident of the city when these payments were made it seems I would not owe city tax on the payments received after I moved away.  i.e. NY city does not tax payments received from NYC sources, just resident income, which it no longer was.   I can not imagine that anyone who lives in NY City and then moves to a town outside the city and gets a December bonus proportions that to the time he lived in and out of the city.

 

I suspect since I am domicile in CA when I received these payments one could argue that I need to declare them on my CA taxes and take a credit for the taxes I paid to NY on my CA return, although I wonder if CA would know or care given they are being taxed in NY State?  

 

Does that seem reasonable?  In any case it is going to an interesting filling year.