Tax Question about state tax liability for ISO income in all cash deal

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IsaacT
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Joined: Mon Jun 11, 2018 8:17 am

Tax Question about state tax liability for ISO income in all cash deal

Post by IsaacT » Mon Jun 11, 2018 8:35 am

Hi experts,

I have a good "problem" as far as questions go. My wife joined a startup in 2012. She received options that vested each month from 2012 through the present, with refresher grants. Last month an all cash acquisition deal closed. This month, we received a very nice sum money.

My question involves the un-exercised options. We received cash for the un-exercised options last week. I know they are treated as income. They were even paid through pay roll. 25.5% of the amount was withheld for federal taxes. I can estimate the full Federal taxes, but for the state taxes I have no idea. We moved from New York City to Florida in 2017 to be near our families and because my wife's company permitted it. Once we moved, we began paying Florida tax on my wife's income because the employer has a florida office.

My questions is - for the options that vested during the time we lived in New York (2012-2016)- do we have to pay NY state tax? Or NYC tax? Or just Florida tax (i.e. ZERO) state tax?

Thanks!

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