Question

State residency start date and income allocation

Forum|Forum|1 year ago
March 19, 2025
1 reply
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I moved back to the States (and settled in NJ specifically) last April on 23rd from Europe, and I received my bonus and final salary payment from my foreign employer on April 21. Am I correct to allocate the salary payment to non-residency period on the part-year return given it's foreign sourced and received just before I landed in NJ?

Additionally, if I am filing a joint return with my partner now, who moved into the state earlier - shall we do the income allocation separately and attach a statement to explain the different residency period? It seems the sample NJ tax form only have one line for start / end date on the return. Thanks a lot.

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AmyC

The state residency will begin when you did the things that show you are actually planning to live there rather than passing through. For US citizens, a driver's license, car tags, renting or buying a home, things that show intent to reside.

Pick a date that shows you both had intent to reside and allocate income NJ has the right to tax.

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B

bloomwindAuthor

Thanks! What if both us move at very different date (like a few months apart)? I guess we should probably report both dates then (on a worksheet / attachment given only one date seems to be on the standard 1040NJ form)?

Additionally, I guess the start date can be any day in the middle of a month (not just the first day) such that any income received just prior to that day should be allocated to non resident period?

Thanks a lot for the help.

AmyC

It is common for one spouse to show up and start working. When it looks reasonable, then the other spouse shows up and they look for a real place, move the kids, etc. That is why actually establishing a residency - this is home - isn't really an exact date. Pick a date when you were both there and it felt like you were really at your new home. You may have a rental agreement or utility bills, something to show you were there.

You will include income the spouse earned before you got there- on NJ but not income you earned elsewhere.

NJ should tax all NJ income and all income during residency. You understand!

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