5 ms·

This year was the last year I owed CA taxes. You still owe them on shares that vest that you earned when you were in CA. Looking forward to not filing taxes wit

This year was the last year I owed CA taxes. You still owe them on shares that vest that you earned when you were in CA. Looking forward to not filing taxes with them next year.

Jarwain 5y ago
Do you know if this is true wrt options as well?
- entangledqubit 5y ago
  Not a tax expert but IIRC since they were earned in CA, they generally are taxed when they result in a net gain of some sort (e.g. sold directly or exercised). Go to Section E of the FTB's publication 1100.
  - Jarwain 5y ago
    urgh maybe I should talk to a tax expert. The section discusses NSOs but I have ISOs. I also don't know how it's impacted by the fact that the company I work for is based in Boston (options were granted after I moved to Cali though), and I'm mainly curious as to how it would be impacted if I move to an income-tax-free state before the options vest
    - junar 5y ago
      FTB Pub 1004, Section D goes into ISOs in greater detail. https://www.ftb.ca.gov/forms/misc/1004.html#D-Incentive-Stock-Options https://www.ftb.ca.gov/forms/misc/1004.html#D-Incentive-Stoc...
LinuxBender 5y ago
RSU's? Exercised options? My understanding is that you would pay taxes on shares sold. Shares not sold are not yet income. Taxes get paid when RSU's vest but that is usually done by your company on your behalf and the numbers will show up in your tax paperwork. A potential wealth tax may side step that however. Either way I let my tax lawyers figure all that out.
- asdfasgasdgasdg 5y ago
  This isn't right. They are counted as income when they vest. They will appear on your W-2. When you sell them is not important for the purpose of income taxation.
  - LinuxBender 5y ago
    Yeah I think the phrasing threw me off. There are taxes paid at the time of vesting of RSU's (vs options) but that is usually done by your employer before you even see the stock in your stock management accounts. The bigger and more ugly taxes come from selling off the stock.
    - asdfasgasdgasdg 5y ago
      Depends on how long you wait to sell, and if what happens to the asset price in the mean time. I sell all my shares the day after they vest or the same day. I pay basically zero net taxes on that action.

This year was the last year I owed CA taxes. You still owe them on shares that vest that you earned when you were in CA. Looking forward to not filing taxes with them next year.

Jarwain 5y ago

Do you know if this is true wrt options as well?

entangledqubit 5y ago
Not a tax expert but IIRC since they were earned in CA, they generally are taxed when they result in a net gain of some sort (e.g. sold directly or exercised). Go to Section E of the FTB's publication 1100.
- Jarwain 5y ago
  urgh maybe I should talk to a tax expert. The section discusses NSOs but I have ISOs. I also don't know how it's impacted by the fact that the company I work for is based in Boston (options were granted after I moved to Cali though), and I'm mainly curious as to how it would be impacted if I move to an income-tax-free state before the options vest
  - junar 5y ago
    FTB Pub 1004, Section D goes into ISOs in greater detail. https://www.ftb.ca.gov/forms/misc/1004.html#D-Incentive-Stock-Options https://www.ftb.ca.gov/forms/misc/1004.html#D-Incentive-Stoc...

LinuxBender 5y ago

RSU's? Exercised options? My understanding is that you would pay taxes on shares sold. Shares not sold are not yet income. Taxes get paid when RSU's vest but that is usually done by your company on your behalf and the numbers will show up in your tax paperwork. A potential wealth tax may side step that however. Either way I let my tax lawyers figure all that out.

asdfasgasdgasdg 5y ago
This isn't right. They are counted as income when they vest. They will appear on your W-2. When you sell them is not important for the purpose of income taxation.
- LinuxBender 5y ago
  Yeah I think the phrasing threw me off. There are taxes paid at the time of vesting of RSU's (vs options) but that is usually done by your employer before you even see the stock in your stock management accounts. The bigger and more ugly taxes come from selling off the stock.
  - asdfasgasdgasdg 5y ago
    Depends on how long you wait to sell, and if what happens to the asset price in the mean time. I sell all my shares the day after they vest or the same day. I pay basically zero net taxes on that action.