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Level 2
May 24, 2023
Solved

Severance taxed by NYS

  • May 24, 2023
  • 1 reply
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Hello,

I live in FL.

The NY company I worked for was purchased by a TX company in 2021.

I received a severance package from that TX company in October 2021 that paid out through July 2022.

 

The NY tax department tells me I owe taxes on all the income in 2022 based on the fact that the severance package was initiated in NY.

 

Does that make sense?

 

I lived in FL for all of 2022.

I was being paid by a TX company for all of 2022.

Why would NY get any tax?

 

Thanks.

 

    Best answer by Hal_Al

    Q. Does that make sense?

    A.  Yes. 

     

    Q. Why would NY get any tax?

    A. The usual reason is that you were a NY employee at the time of your service to the employer that paid the severance, even though the year(s) of that service were different from the year of the actual severance payment. 

    1 reply

    Hal_Al
    Level 15
    Hal_AlLevel 15Answer
    Level 15
    May 24, 2023

    Q. Does that make sense?

    A.  Yes. 

     

    Q. Why would NY get any tax?

    A. The usual reason is that you were a NY employee at the time of your service to the employer that paid the severance, even though the year(s) of that service were different from the year of the actual severance payment.