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multi-state tax issue
Using round numbers for the sake of simplicity, say I lived in Chicago, IL for 9 months, and moved to NYC, NY for the remaining 3 months for the 2021 tax year. Say my taxable salaried wages are $120 for the year, and that I received a taxable bonus at year end (still in 2021) of $100. Total taxable wages of $220. What should my taxable wages breakdown be for the 2021 tax year by city/state as would appear on my W2?
I believe it should be laid out as follows:
Illinois: $90 taxable salary ((9/12)*$120)) + $75 taxable bonus ((9/12)*$100)) for total taxable wages for IL being: $165
Chicago: no city income tax
New York State: total taxable wages of $220 as all income regardless of where earned is reported to New York State
New York City: $30 taxable salary ((3/12)*$120)) + $25 taxable bonus ((3/12)*$100)) for total taxable wages for NYC being: $55
Is this correct?
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multi-state tax issue
Boy that would be nice but it doesn't work that way ... the bonus was paid while you were a NY resident and is only NY income since you will file 2 part year state returns. The employer should have withheld the correct NY taxes on the bonus and it will be reflected on the W-2 form that is issued.
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multi-state tax issue
@MarB1 wrote: "New York State: total taxable wages of $220 as all income regardless of where earned is reported to New York State"
Not exactly. Your NY tax rate would be determined by your total income from all sources, but only your NY income ($30 plus the $100 bonus) would be taxed by NY.
This assumes you did not work in NY prior to moving there.
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