Is a bonus that was received while working in the US for work completed outside the US and before residing in the US deductible or tax exempt?

I moved from the European to the New York office of my employer in March 2019. Until end of February 2019 my sole tax residence was in Europe. Starting March 2019 my sole tax residence was the US. In March 2019 I was paid a bonus by my then American employer. However, the bonus was related to work performed between 2016 and 2018 for its European subsidiary. Is there any way I can deduct or tax exempt that bonus in my 2019 US taxes? Thank you!

484

Expert Alumni

Apr 14, 2020 12:21:55 PM

Yes, I can assist you. However, first I need to determine how you should file. You may be a dual status resident, part year nonresident and part year resident. Kindly advise the number of days you were in the US for any reason in 2017 and 2018. Also please advise if you are married.

If you are married you can file a full year resident return by making an election.

Level 2

Apr 22, 2020 9:00:01 PM

Thanks so much, Karen! In 2018 I spent 100 days in the US, in 2017 10 days. In both years I was not a (tax) resident in the US. Also, I am married.

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Is a bonus that was received while working in the US for work completed outside the US and before residing in the US deductible or tax exempt?