Not easy to summarize this in the subject line. My job requires time spent in both KS and MO at various locations. In 2021 I spent the entire time working in KS. I received an annual bonus in March 2021 and my 2021 W2 is showing wages in MO due to a portion of the bonus being attributed to time spent in MO. When I asked our payroll dept they said that the bonus is based on the time distribution from 2020...so if I worked 20% of my hours in MO in '20 then 20% of the bonus received in March '21 is reported as MO income. Is that right?
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Yes, that is correct. If your bonus is based on your overall hours and you worked a portion of those hours in one state and the rest in another, you would have to file taxes in both states because the money was technically earned in that state.
Thanks. I just assumed reported wages for the year had to reflect where you worked during that filing year but apparently not.
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