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First, I would like to say a big THANK YOU in advance for any replies I may receive. Each year I seem to find myself in a slightly different (but to me sometimes complex) tax situation, and a big part of the value of my Fool membership is the advice I receive here. So....my "special" situation for this year.

I am resident in NJ, but like most people in the ara commute to NY for work. I was employed by an employer in NY until March 9th, at which time they laid me off. However, I was then paid severance until July 7th. I was unemployed until June 12th, at which time I found new work in NY (yippee!).

The W2 provided by the first employer does not differentiate between severance and regular pay. So I can see 2 ways to calculate the # of days working in NY for the state tax return:

# of days until March 9th - non-working and non NY state days

or

# of days until July 7th - non-working and non NY state days

The latter calculation will provide me with a sizable refund, due to the 3 months where I was not in NY, and seems to be the correct calculation due to the fact that my severance was included in my total income from that employer and the time after I was severed would be considered "Other non-working days". I've read through the State instructions for the IT203B Sch A, and it is sparse on details.

Can anyone shed any light on this? Again, thanks for any replies.


It doesn't matter. Either way you look at it, 100% of your NYS-source salary and severance is taxable to NYS since you haven't said that you actually *worked* outside of NYS. Even though you were at home in NJ while receiving your severance, that was at the convenience of the employer, but not the "necessity" of the employer.

Ira
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