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State tax filing
Ordinary income, California will tax the income on the exercise and sale of your ISOs based on the percentage of time you were a resident. The Allocation Ratio is determined by taking the # of days worked in California divided by the total # of workdays for the period, where the period is the length of time between the grant date and the disqualifying sale date. In your example the period would be July 1, 2019 to December 1, 2023. So, approximately 31/1613 = 1.92%. The “spread” when exercising Incentive Stock Options is not considered ordinary income and is only considered income for AMT purposes.
Alternative Minimum Tax - Unlike most states, California does have it's own AMT. The spread would be an AMT adjustment for California tax. The period subject to allocation would be July, 2019 to December 1, 2022. It is highly unlikely you would be subject to California AMT given the small amount that would be allocated to California.
Form more information, see Section E of the California Franchise Tax Board's Taxation of Nonresidents and Individuals Who Change Residency
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