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Spud
Level 2

Do I need to file AL state taxes? I have lived in GA for all of 2023 but received a W2 from my old company in AL due to stock options I exercised and sold.

That was the only income in AL.  I also work in GA and received a W2 for that income.
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2 Replies
DavidD66
Expert Alumni

Do I need to file AL state taxes? I have lived in GA for all of 2023 but received a W2 from my old company in AL due to stock options I exercised and sold.

You do have to file an Alabama non-resident state tax return.  Because the options were granted when you were living/working in Alabama it is considered income taxable by Alabama.  And since you were living in Georgia when you sold them it is Georgia income.  Both states will tax the income.  Georgia, as your resident state will issue you a credit for tax paid to other states.  The credit may not be as much as the actual tax you pay to Alabama due to the different ways each state calculates the tax.  

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Spud
Level 2

Do I need to file AL state taxes? I have lived in GA for all of 2023 but received a W2 from my old company in AL due to stock options I exercised and sold.

Thank you!

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