Received 2021 NY wages in 2022. Did not work in NY in 2022. How do I allocate wages?

[aditya_a]

I had a job in NY in 2021. I left the job in December of 2021. I live in New Jersey. My employer processed some of those 2021 wages in 2022 and sent me a W2.

Now I have not worked in NY in 2022. So on my NY state return as well as my NJ state return should I allocate the wages as 100% NJ and 0% NY?

[ErnieS0]

No. Wages you earned in New York in 2021 but paid out in 2022 are still New York source income, as would payouts for accrued sick time and vacation upon leaving a company.

New York says NY source income includes:

any income you received related to a business, trade, profession, or occupation previously carried on in New York State ....

See Tax Bulletin IT-615 (TB-IT-615)

File a non-resident New York return to report your income.

The same income is also taxable by New Jersey because you were an NJ resident when you received it. 

You can claim a credit on your NJ return for tax paid to NY.