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Date:   Thu, 06 Apr 2006
From:   Anonymous

I exercised employee stock options and sold the shares on the same day. I worked in Connecticut and paid federal and Connecticut income taxes.

Now I'm retired and living in Florida. Do I still have to pay Connecticut income taxes for exercising the non-qualified stock options?

Answer

Date:   14 Jun 2006

Hello,

Like most states that have an income tax, Connecticut taxes income from non-qualified stock options that were earned while working in Connecticut. You will need to file a Connecticut non- resident or part-year resident income tax return to report the income (depending on when you moved to Florida).

Good luck!

Mike Gray

For more information about non-qualified stock options, request our free report, Non-Qualified Stock Options - Executive Tax and Financial Planning Strategies.

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.