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
how are you smart enough to make a large enough bonus to question this but dumb enough to not already know the answer
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
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.
Typically, but depends on state. NY taxes state income earned from and paid from the state regardless of where you are.
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Why waste a whole weekend? Drive to another state and as soon as the bonus hits your account drive back home.
LOL
It's entirely dependent on how long you spend in that state and you would need to spend the majority of your time in that state in order for that to apply.
i've heard a lot of tax avoidance schemes. This has to be the funniest one yet. Imagine being on vacation in CA when your bonus hits and getting hit with a higher tax bill lmao.
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.
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