How is income from a bonus taxable when I move states after receiving the bonus?

[robhenault]

In 2022, I lived the first 75% of the year in MA and the last 25% of the year in NY. 

I received a bonus in Mar 2022 while I still lived in MA. The amount of the bonus was related to job performance during 2021. Do I:

A) Allocate this bonus entirely to MA (because I was living there when the income was received)

B) Allocate 25% of the Bonus to NY (as I am doing with my base salary)

C) Allocate 100% to MA, but split the bonus I receive this year (in 2023) 75/25 on my 2023 return because it is based off my 2022 performance (which was earned 75/25 in both states).

Thanks!

[MaryK4 · Accepted solution]

Because the bonus was based on 2021, you will allocate it all to Massachusetts.  You will also allocate your 2023 bonus exactly as you said- 25% to NY and 75% to MA, which means you will have to file a nonresident Massachusetts return.