Question

Severance Treatent by New Jersey after relocating to California

Forum|Forum|6 years ago
February 9, 2020
1 reply
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I worked in New Jersey for many years for the same company, which eliminated by position in 2018. Out of the goodness of the Company's heart, they paid me one year of severance (after position elimination) in by-weekly payments. I moved back to California in early 2019. My x-employer assigned 100% of my wages to NJ W-2 box 16 and duplicated about 85% of said wages in the CA W-2 box 16. How should I be treating the severance received while living in CA?

M

MAK70

This depends on when you changed your state residence- if you file a Part-Year return for both New Jersey and California, you will allocate the New Jersey resident income and New Jersey nonresident income. (Based on your description, the amount subtracted from the CA amount is the NJ resident portion.) Then when you complete the California, you will complete the credit for taxes paid to another state.