Question

I lived in CA for 7mo and NY for 5mo. I will receive a year end bonus (3x base salary) on 12/31 when I am in NY. Should I be paying 7mo CA taxes and 5mo NY on the bonus?

Forum|Forum|1 year ago
December 18, 2024
1 reply
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Hello I am desperate for help here! I will be getting a large year end performance bonus on 12/31 (when I will be living in NY) but I lived in CA for 7 months out of the year. I transferred offices internally at my company and fully moved from our CA office to our NY office. Should I allocate the bonus based on time spent throughout the year or pay taxes only to NY on the bonus payment?

DoninGA

The bonus received when you are a NY resident is only reported on your NY state tax return.

D

drverbaitumAuthor

But why wouldn’t CA try to tax me on the income as well? It was due to my performance during the full year which includes 7 months in CA, wouldn’t that be considered CA sourced income?

T

TomD8

Why wouldn’t I just get a CA credit for the portion paid to NY?

The W2 isn’t going to show the bonus as CA income so how can CA allege that a bonus paid after moving is related to CA

"Other state" credits are granted by the taxpayer's state of residence. When you receive the bonus, you'll be a New York resident. Thus you would claim the credit on your New York return. I have no idea how California polices its directives. All I can do is acquaint you with their published guidelines.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.