Tax jurisdiction

[nj111]

I'm a New Jersey resident that retired from a job in New York in 2020. I received a bonus and PTO payout in 2021. My W-2 withheld New Jersey taxes. Do I owe any taxes in New York?

[Rick19744]

A few comments:

• In general, as a nonresident, you will need to file a New York form IT-203.
• However, that may not be required if you are below the filing threshold; which we don't have sufficient information to determine.
• While you may owe New York tax on the bonus and PTO (since this in NY sourced income),  you will also receive a credit on your NJ personal tax return for any NY taxes paid.

[DMarkM1 · Accepted solution]

NY tax law is not specific on these payments to non-residents.  Generally NY taxes non-residents on income earned for performing services in NY.  Given that general definition, I would say that you earned the bonus and the time off while performing services in NY.  I would allocate the W2 income to NY. 

As you probably have done before with your NY non-resident taxes, you would then claim a credit for taxes paid to another state (NY) on your NJ resident return.