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
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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

Employee

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

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?

DoninGA

Employee

The bonus is based on your performance with the company. Since you will be receiving the bonus from the company while a resident of New York, then the payment would only be reported on your New York state tax return.