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April 17, 2023
Question

Question about bonus I received when I'm a nonresident of NJ

  • April 17, 2023
  • 1 reply
  • 0 views

I have a question about the New Jersey source income. When I was a florida resident, I worked for a NJ employer remotely. so the wages I earned during the days I'm in Florida are not included in my NJ income. However I received my sign-on bonus with that paycheck. Although I was not in NJ, my employer think the bonus is sourced to NJ so they included the bonus amount alone to my NJ income and also withhold tax for that bonus. In this case, is it considered that I received NJ income when I'm a non-resident so that I need to file NJ-1040NR?

1 reply

April 17, 2023

If you did not work in New Jersey, it cannot be NJ-source income.  If NJ tax was withheld, you can file the nonresident New Jersey return with zero NJ income to get the withholding refunded.

April 17, 2023

so does that mean my employer incorrectly include that bonuse to my NJ income? Would it be ok if my NJ total income does not align with the W-2 box 16 amount?

KrisD15
April 17, 2023

Yes, even if the employer claims the state income is XXX, you can allocate a different amount when reporting your non-resident state return which you will file in order to get that state tax, which was withheld, refunded.  

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