Does Ohio Tax Non Statutory Stock Options after Moving to a New State for Retirement?

[SPARKIT]

Hello. 

I earned Non-Statutory Stock Options from my Ohio Employer while also residing in Ohio.  

I retired, then later moved to NC. I exercised one of the options the following year after moving (the full year as NC resident).

Is the following correct?

Ohio law/rules mean that I file in Ohio and Ohio applies state tax to the entire gain from the exercise of the stock option.  Then to make it tax-neutral to me, I fill out the NC tax return for a credit for the tax I pay Ohio. 

Thank You, SPARKIT

Note: Recall that NC has a state tax.  For a non-tax state like FL, there would be no credit for the OH tax. 

Note2: I understand that Ohio cannot tax any other income received while a full-year resident of NC

[DavidD66 · Accepted solution]

Stock options are compensation for performing personal services, and Ohio law specifically allocates to Ohio all items of compensation paid to a nonresident for services performed in Ohio.  So, if you earned the option while working in Ohio, they are taxable by Ohio, even if you were a non-resident when you exercised the options.  You are correct that you will receive a credit on your North Carolina tax return for taxes paid to other states.