I'm receiving a 25,000 bonus for moving to another location with my current company functioning in the same capacity. It was labled as an 'incentive' bonus.

I already received 17500 of it and it was taxed at 32.5% that's a 25% bonus tax and 7.5 FICA, and Medicare (according to the Controller). At the time I was living in Florida.

Now I live in NY, NY and I'm getting the remainder, $7500. Will the taxation be different now that I am living in NY, NY? Florida has no state income tax. I'm very worried because when moving and calculating expenses, etc, I forgot about possibly NY state income taxation and now I'm afraid I will come up short because of this.

Anyone that can offer some help - thank you in advance.

AtlantaTaxExpert

Dave:

Income earned while a resident of NY is subject to NY income taxes. If you are living in NY when you get the money, NY will consider the $7,500 NY-based income unless you can provide specific proof that it is Florida-based income. Sorry about that.

dave_mwi

Thanks...so will my employer tax the bonus before giving it to me or will they only apply the 32.5% tax and then I'll have to deal with it at the end of the year - or is this strictly a decision my employer will make? Thanks for your help.

AtlantaTaxExpert

Your employer should withhold taxes from the income for NY state.

If not, he WILL add it to your NY-based income for you to deal with it at the end of the year.