How are my employee stock option taxes impacted by moving to a new state?

October 10, 2011

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?


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,

Consider getting professional help. That’s our business!

Good luck!

Mike Gray

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