My employer moved me from State#1 to State#2 and paid me a lump sum payment 2 months before my move, i.e. State#1. Does this income belong to State#1 or 2's tax return?

[ab2015]

I am working on this job since 2015 and was receiving my paychecks in State#1 while also working in State#1.

[MiriamF · Accepted solution]

The income gets reported on your return for State #1.

The determining factor about whether income is taxed in a particular state depends upon where you lived when you earned it. Because you were living in State #1 when you received the payment, it counts as State #1-source income and is reported to and taxed by that state.