Question arose as to which state, taxes are to be paid on Employer Stock Options.
I have not looked it up yet or know exactly where to start, but example:
Taxpayer worked in Illinois and was awarded stock options in 2002. In 2004 taxpayer moved to Ohio (still working for same employer). In 2006 taxpayer exercised stock option, (Ohio resident) and the transaction was reported on taxpayer's W-2 form. Federal and Ohio State taxes were withheld.
Taxpayer seems to think that there is a State Regulation (at least for Illinois) that when the option is exercised, for that Option Awarded in 2002 while an Illinois Resident, a non resident Illinois tax return needs to be filed paying the Illinois tax (2006) on that option, and then taking credit on the Ohio return.
Anyone know of this regulation?
Sandy
I have not looked it up yet or know exactly where to start, but example:
Taxpayer worked in Illinois and was awarded stock options in 2002. In 2004 taxpayer moved to Ohio (still working for same employer). In 2006 taxpayer exercised stock option, (Ohio resident) and the transaction was reported on taxpayer's W-2 form. Federal and Ohio State taxes were withheld.
Taxpayer seems to think that there is a State Regulation (at least for Illinois) that when the option is exercised, for that Option Awarded in 2002 while an Illinois Resident, a non resident Illinois tax return needs to be filed paying the Illinois tax (2006) on that option, and then taking credit on the Ohio return.
Anyone know of this regulation?
Sandy
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