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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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Hi, I have a question about withholding state & city tax on

Resolved Question:

Hi, I have a question about withholding state & city tax on bonus income. I currently live in NYC and will be receiving bonus payment on end of May this year. However, I plan to re-locate to South Korea by first week of June. Given that, I won't be a New York state resident for the tax purpose. Should I still withhold state and city tax on this bonus? Thanks so much.
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.

LEV :

Hi and welcome to Just Answer!
Most people living outside the City are not subject to NYC personal income tax. However, non-city residents who are Employees of New York City must file Form 1127 and pay taxes each year. The amount is equal to the personal income tax they would owe if they were City residents.

LEV :

If you were a resident of New York City for only part of 2010, you are subject to New York City tax on


--all income you received while you were a resident.


You might need to include the bonus under special accruals rules that paid after you move out, but was announced while you were a NYC resident.
Income accrues to you when the amount of income becomes fixed and determinable and you have an unrestricted right to receive it.



http://www.tax.ny.gov/pdf/2010/inc/it360_1i_2010.pdf - page 2 left column - special accruals.




LEV :

For part-year residents New York source income is the sum of the following with adjustments for special accruals on all income reported on your federal return for the period you are a resident of New York State;


Income accrues to you as a taxpayer when the amount of income becomes fixed and determinable and you have an unrestricted right to receive it. For instance if you earned wages while NYC resident but received them after you became a nonresident – these are taxable.

Customer:

Gotcha. That makes sense. I will withhold the appropriate amount and deal with it when I'm filing for the tax return.

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