Is option income subject to California tax even if I move?
August 17, 2005
Subject: Question about tax on stock options
Date: Mon, 11 Jul 2005
I used to work for a company in San Diego, California and I received stock options from them. I resigned from that company and moved to Washington state, where I now live and work.
I have to exercise the options now. Since I am not a resident of California anymore, is the income from the exercise of the options subject to California tax?
Date: Mon, 08 Aug 2005
Yes. Since all of the services for which the options were issued were performed in California, all of the income is taxable in California. See FTB Publication 1004. (You can get a copy atwww.ftb.ca.gov)
For more information about incentive stock options, request our free report, Incentive Stock Options – Executive Tax and Financial Planning Strategies.
For more information about non-qualified stock options, request our free report, Non-Qualified Stock Options – Executive Tax and Financial Planning Strategies. .