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June 3, 2019
Solved

Do I have to pay state income taxes to NJ on severance payments even if I become a FL resident in January?

  • June 3, 2019
  • 2 replies
  • 0 views

I notified the previous employer that I was a FL resident, but they continued to withhold NJ State Income Tax on the monthly severance payments.  Am I entitled to file with NJ for a refund of the State Income tax paid to them?

Best answer by SweetieJean

This is tricky, because NJ taxes nonresidents on payments received  "for services performed in New Jersey."  Specifically, severance pay is considered to be New Jersey source income, under N.J.S.A. 54A:5-8.

https://law.justia.com/codes/new-jersey/2009/title-54a/section-54a-5/54a-5-8

I suggest you call the NJ tax authority, and discuss it with them

2 replies

Employee
June 3, 2019
Jan of 2017, or Jan of 2018?
Employee
June 3, 2019

This is tricky, because NJ taxes nonresidents on payments received  "for services performed in New Jersey."  Specifically, severance pay is considered to be New Jersey source income, under N.J.S.A. 54A:5-8.

https://law.justia.com/codes/new-jersey/2009/title-54a/section-54a-5/54a-5-8

I suggest you call the NJ tax authority, and discuss it with them