Question

NYS taxes

Forum|Forum|5 years ago
May 13, 2021
1 reply
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I'm retired and living in Florida full time. Exercised some stock options from my previous NYS based employer. They issued a W2 showing NYS income and state tax withheld. I shouldn't have to pay NYS tax on this income surely? how do I show in NYS non-resident tax return>

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ErnieS0

Your employer is correct. Your stock options are New York income because it is based on New York employment.

See: New York State Tax Treatment of Stock Options, Restricted Stock, and Stock Appreciation Rights Received by Nonresidents and Part-Year Residents

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H

Hutch10Author

Thank you for the reply. I do understand what you said, but I've been retired for 6 years, and lived in Florida for all of 2020. I surely don't have to pay the full amount of NYS tax withheld on the option exercised? Turbo Tax is not letting me allocate the income on either the percentage or days allocation. If I report the full amount of the option gain as NY source income (nothing else for NY) I get back approximately 1/3 of what was withheld per the W2.

LenaH

Yes, it is fully taxable in NYS as it was a benefit from working in New York State. This income should not be allocated by percentage or days, since it is fully taxable in the state of New York.

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