Do I owe California tax on options granted in Washington?
September 30, 2011
Date: 30 Jan 2009
I received company options while working for a company in the state of Washington. My company was bought by a California company, which offered me a position in California. After two years, I left California, bought a house in Washington and registered to vote. My company withheld California state taxes. We petitioned in submitting our return and were given back income taxes paid for 2004. Over the last six months, the Franchise Tax Board is asking for a portion of that money back plus interest.
Am I responsible for paying this? None of the options exercised were granted in California.
Date: 5 Feb 2009
Some of the option income is probably taxable in California. Even though the options were granted, you continued working for the company for a period of time in California. See Franchise Tax Board Publication 1004, Stock Option Guidelines. The web site is http://www.ftb.ca.gov.
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