Ask Experts Questions for FREE Help !
Ask
    mfowler's Avatar
    mfowler Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 22, 2005, 11:22 AM
    Stock option tax liability when leaving US.
    Hi,

    I need clarification on my (non-qualified) stock option tax liability. I arrived in the US on an L-1 visa in Jan this year, however, I will leave my employment and the US before the end of the year. I will then excerise and sell my company stock options (I have 1 month to do so after termination of employment). 95% of my stock options have vested while based in Europe.

    My question:
    Once I have left my company and the US will I still be tax resident for withholding purposes?

    Many thanks,
    Michael.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 23, 2005, 05:38 AM
    Michael:

    Even though you were based in Europe, the stock options are U.S.-based and therefore subject to U.S. taxation.

    When the options are exercised, the appropriate taxes will be withheld, probably in excess of what you actually owe. To get the excess back, you have to file a tax return for the year in which you exercised the option.

    BOTTOM LINE: You will have to file a tax return (probably Form 1040NR) to get your refund.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Liability for abortion complications [ 3 Answers ]

Hello. A woman has an abortion. Afterward she has an infection which forces her to be taken to the hospital. She now owes $2500 in doctor bills, and is threatening to sue the baby's father for these bills. Is there any liability on the part of the baby's father, assuming that they are not...

Homeowner liability [ 20 Answers ]

As a homeowner renting out a room, can my roommate sue me if she has a slip and fall type accident on my property?

Sub-contractor liability [ 3 Answers ]

I am a resident of Michigan,and am a sub-contractor for a limo company. I am curious about a situation that happened to two other employees one was hit by a stolen car and was charged by our boss the deductible for the damage.the other guy hit a barrier and is being charged for all the repairs to...

Trampoline liability [ 0 Answers ]

I have recently purchased a full-size round trampoline for my two kids, 5 and 7. It is in our fenced (3 1/2 ft.) backyard, which is visible to at least a dozen homes in the neighborhood. All of a sudden, every kid in the neighborhood wants to come over and make friends---and the first thing they...

View more questions Search