Taxes on a non qualified deferred comp plan
I recently moved from NY to NJ (no wisecracks please). I received the third payout of my old plan. I allocated taxes as 79% – 21% by simply counting the days in each state. Well NY says I deferred these funds while a resident so they want 100% NY tax. Which means that I have to file NY taxes for the next seven years even though I live in NJ 100% of the time. That does not sound right to me at all. I think I should pay NJ the taxes as that’s where I am living – and if lived in a no state tax state then I would pay ZERO state taxes. Can anyone share any info? Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2021-06-11 19:45
The following link will provide a complex explanation for this scenario.
Leaving New York? Plan For The Taxation Of Deferred Compensation | Farrell Fritz, P.C. – JDSupra