Date:   Thu, 06 Apr 2006
From:   Anonymous

I exercised employee stock options and sold the shares on the same day. I worked in Connecticut and paid federal and Connecticut income taxes.

Now I’m retired and living in Florida. Do I still have to pay Connecticut income taxes for exercising the non-qualified stock options?

Answer

Date:   14 Jun 2006

Hello,

Like most states that have an income tax, Connecticut taxes income from non-qualified stock options that were earned while working in Connecticut. You will need to file a Connecticut non- resident or part-year resident income tax return to report the income (depending on when you moved to Florida).

Good luck!

Mike Gray

For more information about non-qualified stock options, request our free report, “Executive Tax and Financial Planning For Non-Qualified Stock Options”.