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: 
EricJPrice
New Member

Is a bonus earned and received in one state, possibly taxable in a new state if you move a month after receiving the bonus and live in both states in the same year?

I live in Washington state with no income tax and I will receive a bonus in May while living in WA for work performed in WA. Lets say it is a sizeable bonus and that no state income tax is withheld. If I move to NY a few months later in August, will I owe some amount of NY state income tax on that money at the end of the year or is it not taxed because it was received in Seattle for work in Seattle?

4 Replies
KrisD
Intuit Alumni

Is a bonus earned and received in one state, possibly taxable in a new state if you move a month after receiving the bonus and live in both states in the same year?

No, if you lived in 2 states in 2017, but you only earned income in the state that you were living in at the time you earned it, the income earned is tax at the rate of the state where you were living at that time. 

The fact that you move does not affect income already earned. 

Answer the interview questions in TurboTax carefully and assign the income to the proper state. 

Normally we emphasize the importance of the order in which you do your state tax returns, but since WA has no state filing requirement, you will only file as a part-year resident of NY.

When you do your NY state return, the software will prompt you to assign part of your income to another state. 

EricJPrice
New Member

Is a bonus earned and received in one state, possibly taxable in a new state if you move a month after receiving the bonus and live in both states in the same year?

Just to be clear, after I move to NY I will still work for the same company and earn income in NY in the same year.

Based on this answer it sounds like I am better off asking for the bonus to be paid before I move while still living in Seattle so I don't have to pay NY income tax on it. Is this correct?
S-H
New Member

Is a bonus earned and received in one state, possibly taxable in a new state if you move a month after receiving the bonus and live in both states in the same year?

I’m in a similar circumstance, moving from NH (no tax) to CO.    Bonus paid on 6/1 had CO state tax withheld.  The bonus was for work performed prior in NH. I took residency in CO on 6/9.   I’m assuming tax was incorrectly withheld for CO state on that bonus, and I should receive the refund when filing my CO state tax?

Anonymous
Not applicable

Is a bonus earned and received in one state, possibly taxable in a new state if you move a month after receiving the bonus and live in both states in the same year?

I agree.  since work performed in NH no w/h for Co.   you'll have to have your employer issue a w-2c 

Dynamic AdsDynamic Ads
Privacy Settings
v