Print This Page

Date:   14 May 2008
From:   Colleen

I earned stock options while working in California and exercised them two years after moving to Idaho. I filed and paid California state taxes as a non-resident of California for 2007. Now Idaho is asking me to pay Idaho state taxes on the same income. What should I do?

Answer

Date:   4 Jun 2008

Hello Colleen,

Claim a state tax credit on your Idaho income tax return for the California tax paid on the income.

See page 8 of the Idaho income tax instructions. You compute the state tax credit at page 2 of Idaho Form 39R and carry the amount to line 22 of Idaho Form 40 (Idaho income tax return).

Good luck!

Mike Gray

For more answers to our readers' questions and to learn about new tax developments relating to employee stock options, subscribe to our newsletter, Michael Gray, CPA's Option Alert!

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.