Avoiding taxes on bonus by short-term moving?

Hey everyone!

Quick question for you. If I were to move to a state with no state income tax (e.g., Texas, Washington) for a week or something when by end of year bonus hit, could I claim that I live there and not pay the income tax on the bonus? My fund lets me work remote but I'm in a state that has income tax, and I'd be totally willing to move for a week/get a short term lease/ get a PO Box or whatever I need to avoid the tax on the bonus.

Thanks in advance!

-KHC

Comments (11)

Most Helpful
Aug 30, 2021 - 8:06pm
famejranc, what's your opinion? Comment below:

how are you smart enough to make a large enough bonus to question this but dumb enough to not already know the answer

Aug 30, 2021 - 8:25pm
kindheartedconsultant, what's your opinion? Comment below:

Made me laugh :)

But tbh, I'm completely ignorant on this and Googling didn't get my a solid answer, so any insight you have would be awesome.

Best,

KHC

Remember, always be kind-hearted.
Aug 30, 2021 - 8:36pm
TheFlyingKiwi, what's your opinion? Comment below:

I'm pretty sure you have to live more than 1/2 of the year in that state... or at least claim to. Ran into this when I filed taxes last year since I was split between NYC and another state, which i was in for a majority of the year.

Go all the way

  • 1
  • Intern in IB-M&A
Sep 1, 2021 - 12:00pm

Why waste a whole weekend? Drive to another state and as soon as the bonus hits your account drive back home.

Sep 2, 2021 - 5:41pm
weldsfargo, what's your opinion? Comment below:

Simply put. It's where you lived and also where your employment is located. If you're in NJ but work in the city, even if you remoted in 50% of the year, since the company is headquartered in NYC, you still pay NYC taxes. Only way out of it is if your company moved your location to say their Florida office and you work there/remote for at least 50% of the year.

  • Analyst 1 in IB - Cov
Sep 2, 2021 - 5:56pm

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