Do I need a NY nonresident return?

[Arna542534]

Hello,

I got a delayed payment for a frontline health worker's bonus benefit from NYC last year. I applied in 2022 when I still lived in NYC for healthcare work done in 2021-2022, but the application didn't go through until 2023 (they were backed up). The city finally distributed the amount to my old workplace, after which they sent it to me as a W-2 in 2023. There is no state/federal tax on it. It's practically a bonus from the city but passed through my old workplace. I moved to another state in 2022 and already filed a 2022 non-resident state return for NY state. So now do I need to submit a 2023 non-resident state return for NY state for this payment even though I have not set foot nor worked there for the entirety of 2023? I just don't know what to make of this. 

[DawnC · Accepted solution]

If the payment was from the state of NY, yes, you need a NY nonresident return again this year.  Even though you were not in NY in 2023, that income is still NY sourced.   If it is not from the state of NY, you only have to report it as nonresident NY income if the payment was for work done while in NY.    Is there anything in Boxes 15-20?  

New York also has the convenience of the employer rule, which may apply.    See nonresidents (full year and part-year residents) in that link.  You're a New York State nonresident if you were not a resident of New York State for any part of the year.  So:

As a nonresident, you only pay tax on New York-based income, which includes:

• Earnings from work performed in New York State, and 
• Income from real property located in the state

If this is true for you, here’s how to enter New York state income as a nonresident.

FAQs for NY residency and remote work -