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April 9, 2021
Question

Out of state severance pay .. taxable?

  • April 9, 2021
  • 1 reply
  • 0 views

I am receiving severance payments from my former employer for a job that was based in Arizona. I moved out of state before I started receiving the payments. Is this income taxable by the state of Arizona?

1 reply

DaveF1006
April 9, 2021

Yes, this would be Arizona taxable income since this was based from a job performed in Arizona.  You would file this as an Arizona part-year resident. 

 

When you file your returns, be sure to prepare your Arizona non-resident return first so you will receive a credit for Arizona taxes paid in your resident state.

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