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Date:   6 May 2008
From:   Benjamin

I received stock options and RSUs from a Massachusetts employer. Now I'm relocating to a California office. How are my state taxes impacted?

Answer

Date:   4 Jun 2008

Hello Benjamin,

This is not a "short answer" question.

At least some of the income when you exercise your options and as your RSUs vest will be subject to tax in both states, with a potential state tax credit (California Schedule S).

I suggest that you get a copy of FTB Publication 1004, Stock Option Guidelines, from the California Franchise Tax Board's web site, www.ftb.ca.gov.

Consider getting professional help. That's our business!

Good luck!

Mike Gray

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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.