I received a stock option in 2007 when I was living and working in Oregon. I moved to Montana in 2014 and exercised the option last year (2017). The stock broker paid Oregon State tax. I need to get the taxes paid to Oregon back and pay Montana tax. Can Turbo Tax handle this?
"I need to get the taxes paid to Oregon back..."
Maybe, or maybe not. Most states that I'm aware of claim as theirs the "compensation" created by the exercise of a NQSO that was granted while you worked in that state, even if you no longer live in that state when you exercise. I don't know that Oregon, specifically, takes that stance but the fact that the broker withheld Oregon taxes suggests that they do. (Having a broker withhold taxes is a pretty rare event, usually caused by either not submitting a W-9 or stating on that W-9 that you ARE subject to "backup withholding.")
The typical way of handling a situation like this is to prepare two state income tax returns. First prepare your Oregon state non-resident income tax return. If you end up with an Oregon state income tax liability then you'd take that tax as a credit against your Montana income tax return, more or less eliminating the "double taxation" issue.
Tom Young
"I need to get the taxes paid to Oregon back..."
Maybe, or maybe not. Most states that I'm aware of claim as theirs the "compensation" created by the exercise of a NQSO that was granted while you worked in that state, even if you no longer live in that state when you exercise. I don't know that Oregon, specifically, takes that stance but the fact that the broker withheld Oregon taxes suggests that they do. (Having a broker withhold taxes is a pretty rare event, usually caused by either not submitting a W-9 or stating on that W-9 that you ARE subject to "backup withholding.")
The typical way of handling a situation like this is to prepare two state income tax returns. First prepare your Oregon state non-resident income tax return. If you end up with an Oregon state income tax liability then you'd take that tax as a credit against your Montana income tax return, more or less eliminating the "double taxation" issue.
Tom Young