Massachusetts resource income for non residents

Forum|Forum|1 year ago
March 26, 2025
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Is disqualifying disposition from ESPP taxable for non Massachusetts residents? In another word, is disqualifying disposition derived from ESPP stock sales considered Massachusetts resource income?

Best answer by MAK70

If you worked in Massachusetts when you made the ESPP purchased or qualified for the purchased, it most likely is Massachusetts income.

MAK70Answer

If you worked in Massachusetts when you made the ESPP purchased or qualified for the purchased, it most likely is Massachusetts income.

KXBG4746Author

Thanks for your reply. For non-resident and work outside of Massachusetts (remote work for Mass company), is disqualified disposition from ESPP Massachusetts income?

mglauner

Yes, any income derived from Massachusetts sources would be considered 'MA source income' and reported on a Non-Resident return. If you sold employee stock from a MA employer and received a 1099-B, any capital gain/loss would be reported on your non-resident return. Here's more info from MA Dept. of Revenue.

For a 'disqualifying disposition', add the amount from your W-2 (may be in Box 14) to the cost of the shares to get your correct Cost Basis. You can then enter the 1099-B as a regular stock sale (not employee stock).

Here's more detailed info on Employee Stock Purchase Plans.

@KXBG4746