Do I have to report Idaho income on options acquired in California?

October 10, 2011

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

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