Signing Bonus and State Taxes
If you are living in a different state (Texas for example) when you receive your signing bonus and you take an offer to work in New York - how do the state income taxes work?
Can you claim your signing bonus as Texas income and pay the Texas state tax rate (0%) on your signing bonus? Or do you have to claim the signing bonus as New York income?
Does it matter how many days you lived in each state for the year, etc?
Thanks for any help that anyone may have.
No you will get taxed in the state where your going to work.
yep taxed in NY baby say good bye to half of it!
It depends. This assumes you start in summer of 2011 in NYC. If you received the signing bonus in 2010 and you plan on filing in Texas, you should receive most of the income taxes back. If however you received it in 2011, it is likely that you will have to file it in NY and will not get much back. Hope that helps.
I agree with seth davis (based on my own experience several years ago), with the disclaimer that you should consult your own tax advisor.
typically you are taxed based on where you live when you earn income, not where you worked when you earned the income (for example, a lot of bankers who live in NJ or CT, do not pay NYS/NYC income tax)
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