Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Jbee28
Level 2

Severance pay with NY source, but moved to CA.

Hi! I was laid off in August and moved back to CA in August. I didn’t find employment again until January 2020. I received 2 W-2 for 2019. One was regular wages and the other one for my severance. How do I enter my severance when I file my NY taxes? I think I have to file as part time resident,  but do I enter everything under wages? Or do I need to input the severance pay under special accruals? 

5 Replies
BillM223
Expert Alumni

Severance pay with NY source, but moved to CA.

Generally, you pay taxes where you work and also where you live.

 

Your description suggests that you will file part-year resident returns for both New York and California (you were living in New York State when you were laid off, right?).

 

Both your regular wages and your severance are New York source income, so add them when entering the New York interview.

 

California will likely give you a credit for New York taxes paid. This appears on line 43, Form 540 (but you are filing form 540NR as a part year resident, so look for a line that is reporting tax paid to other state.

 

On what form was the severance reported? A W-2? Then just enter it like the other W-2.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Jbee28
Level 2

Severance pay with NY source, but moved to CA.

@BillM223 

Yes, lived in NY from January until end of August.  And yes, the severance was reflected as a W2. Thank you so much! 

BillM223
Expert Alumni

Severance pay with NY source, but moved to CA.

Happy to do it!

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Jbee28
Level 2

Severance pay with NY source, but moved to CA.

@BillM223 Is it safe to assume that I would get a larger than normal NY refund since I’m filing as part time resident? In 2018, my refund was $1200, whereas my refund in 2019 is double that, but my taxable income was much higher. 

BillM223
Expert Alumni

Severance pay with NY source, but moved to CA.

New York tax is not based on time there, but on income considered New York source income and its corresponding withholding.

 

So the refund could be higher or lower.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v