If full detailed answer to my question requires me to purchase some special plan in turbotax, please let me know which one so that I will get it.
Given:
- I moved from California to Oregon in October 2020, but stayed with same employer
- My employer uses E-Trade for the stock plan management
- I was granted non-qualified stock options in August 2019 (when I was CA resident), which I exercised and sold in May 2021 (after I became OR resident)
- During exercise, I was taxed by both Oregon (8% tax rate for the whole gain) and California (10.23% tax rate for the pro-rated gain 64%, which is calculated time spent in CA after grant divided by time between grant and exercise). I guess it was done by Stock Plan Administrator from my employer.
- In my 2021 W2, all that gain is included into wages (boxes 1 and 5) as well as box 12 code V. Both Californian and Oregonian taxes are shown in state wages/taxes (sections 15-17).
Questions:
1.
Is it correct that stock plan exercise gain / taxes are included into W2? Do I need to include 1099 from E-trade into tax return form?
I suppose I should include E-trade 1099 (because E-trade is supposed to send 1099 to IRS, so I need to align with it).
But when I include E-trade 1099 into my tax return, my total income includes exercise income twice (one from W2, second from 1099), and Turbotax decides I needs to pay taxes for "second" one.
2.
Why was I taxed 10.23% by California?
I didn't have any other California-taxable income that year. Shouldn't the tax rate depend on tax brackets?
3.
I guess I need to file for "other state tax credit" to get back Californian tax.
Will I get back the whole CA tax, or only some part of it (like the difference between 10.23% as CA rate and 8% as OR rate)?
What exactly should I do in Turbotax in order to submit it properly? (taking into account my question #1)
