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Do I have to pay CA state income tax on stock options' proceeds (Non-Qual Stock Options Plan from CA employer) if I live in FL?

On the last quarter of 2015 I retired and moved from CA to FL (still live in FL). I received a W2 from my previous employer reflecting the proceeds from stock options I exercised during 2016. This W2 shows Fed. Inc. Tax withheld as well as CA's state income tax. I'm curious about why the latter and if there is any way to get CA's taxes reimbursed. Thanks.
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Do I have to pay CA state income tax on stock options' proceeds (Non-Qual Stock Options Plan from CA employer) if I live in FL?

The "compensation element" of your exercise might be taxable by CA.  The various actions available to you when you exercise NQ stock options can be complex.  See the excellent TurboTax FAQ on the subject at:
   https://turbotax.intuit.com/tax-tools/tax-tips/Investments-and-Taxes/Non-Qualified-Stock-Options/INF...

If not taxable, then you would have to file a non-resident CA tax return to recover the CA income tax withholding.

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5 Replies

Do I have to pay CA state income tax on stock options' proceeds (Non-Qual Stock Options Plan from CA employer) if I live in FL?

The "compensation element" of your exercise might be taxable by CA.  The various actions available to you when you exercise NQ stock options can be complex.  See the excellent TurboTax FAQ on the subject at:
   https://turbotax.intuit.com/tax-tools/tax-tips/Investments-and-Taxes/Non-Qualified-Stock-Options/INF...

If not taxable, then you would have to file a non-resident CA tax return to recover the CA income tax withholding.

Do I have to pay CA state income tax on stock options' proceeds (Non-Qual Stock Options Plan from CA employer) if I live in FL?

Thanks for the prompt answer. Very clear. Do I still have to file in CA, or Federal and FL should suffice?

Do I have to pay CA state income tax on stock options' proceeds (Non-Qual Stock Options Plan from CA employer) if I live in FL?

Sorry, what is not clear from the answer provided is if I have to pay state income tax in CA if I live now in FL (no state income tax). And if I don't have to pay in CA, how do I recover what was deducted on my W2?

Do I have to pay CA state income tax on stock options' proceeds (Non-Qual Stock Options Plan from CA employer) if I live in FL?

I'm sorry, too.  I belatedly added an additional line to my answer, above.  To recover CA income tax withheld you would have to file a non-resident CA income tax return.  In the non-resident tax return, you delineate what income was received when, versus when not, a CA resident.

Do I have to pay CA state income tax on stock options' proceeds (Non-Qual Stock Options Plan from CA employer) if I live in FL?

OK. Thanks for your help.
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