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Deferred Compensation and State Tax

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tconly

Junior Member
What is the name of your state? Currently Texas.

Texas has no state income tax. I have deferred a portion of my income through my
employer (I'll receive the income after leaving the company). If I remain in Texas
the state income tax will be whatever Texas requires at the time I receive the deferred
income.

Any comments, experiences, examples, or documentation you can make note of that
illustrates whether the deferred income is taxed if I receive it while living in a different
state that does have state income tax? In other words, the money was earned in Texas
but will be paid to me while living in another state; will State income taxes be required
in the state of residency or...?

Thank you,
tconlyWhat is the name of your state?
 


LdiJ

Senior Member
What is the name of your state? Currently Texas.

Texas has no state income tax. I have deferred a portion of my income through my
employer (I'll receive the income after leaving the company). If I remain in Texas
the state income tax will be whatever Texas requires at the time I receive the deferred
income.

Any comments, experiences, examples, or documentation you can make note of that
illustrates whether the deferred income is taxed if I receive it while living in a different
state that does have state income tax? In other words, the money was earned in Texas
but will be paid to me while living in another state; will State income taxes be required
in the state of residency or...?

Thank you,
tconlyWhat is the name of your state?
Individuals are cash basis taxpayers. Therefore it isn't income until you get it.
 

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