ErnieS0
Expert Alumni

State tax filing

No. The options are taxable when paid out, not when are were earned. I assume you received them as a last check around the time you moved to Arizona. In that case, I suggest putting the amount with your New Jersey income.

 

If you received the W-2 long after you moved to AZ and established residency, then it would be NJ and AZ income. You would add the amount to AZ and NJ and claim a tax credit on the AZ return for the amount of NJ tax on that income. You’d figure what percentage of NJ income that W-2 represents and then prorate the tax. For example, if it was 25% of your NJ income, then you use 25% of your NJ tax liability for purposes of computing the tax credit on your AZ return.

 

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