How are my employee stock option taxes impacted by moving to a new state?
October 10, 2011
Date: 6 May 2008
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
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!