Tax Help for Tech Professionals, Remote Workers, and Expats

Working in tech often means your pay comes in many pieces: salary, RSUs that vest every quarter, stock options, an ESPP, and sometimes a move to a new state or a fully remote job. Each piece is taxed differently, and the paperwork your employer and broker send rarely tells the whole story. We help you report it correctly, avoid paying tax twice, and plan ahead so April is not a surprise.

RSUs (Restricted Stock Units)

RSUs are taxed as ordinary wages when they vest, based on the value of the shares that day. Your employer usually withholds at flat supplemental rates, often 22% federal (37% on supplemental wages over $1 million) and 10.23% for California. For many Bay Area professionals that is less than their actual tax rate, which is why a large balance due can appear at filing time.

• Review how much was withheld on each vest compared to what you will actually owe
• Correct missing or zero cost basis on your 1099-B so the same income is not taxed twice
• Plan quarterly estimated payments around your vesting calendar
• Think through when to sell, hold, or diversify, with the tax effect known first

Stock Options and ESPP

Incentive stock options (ISOs) can trigger the alternative minimum tax (AMT) when you exercise and hold, at both the federal and California level. Selling at least two years after the grant date and one year after exercise can qualify the gain for long-term capital gain treatment. Your employer reports ISO exercises on Form 3921.

Non-qualified stock options (NSOs) create ordinary income at exercise on the spread between the market price and your exercise price.

Employee stock purchase plans (ESPP) are reported on Form 3922. Whether a sale is a qualifying or disqualifying disposition changes how much is ordinary income, and brokers often report the basis incompletely.

If you early-exercise options or receive restricted stock at a startup, an 83(b) election must be filed with the IRS within 30 days. It is a decision worth making carefully, and on time.

Moving In or Out of California

Relocating is one of the most common reasons tech professionals overpay or get a letter from the Franchise Tax Board (FTB). California can tax the portion of your equity that was earned while you worked here, generally allocated by your California workdays between grant and vest, even after you move away.

• Part-year and nonresident California returns (Form 540NR)
• Allocating RSU and option income between California and your new state
• Documenting your move date and ties to help support your residency position
• Representation if the FTB opens a residency review

Remote and Multi-State Work

If you live in California and work remotely for a company based elsewhere, California generally taxes those wages. If you live elsewhere and travel to the Bay Area for work, California may tax the days you work here. A few states, such as New York, may also tax remote employees of employers in their state. We figure out where tax is owed, fix withholding when it is set up for the wrong state, and claim credits so the same income is not taxed twice.

Living or Working Abroad (Expat Taxes)

U.S. citizens and green card holders must file a U.S. tax return no matter where they live. Moving abroad for a tech role, or taking your remote job overseas, adds new forms and new chances for double taxation. We help you file correctly from wherever you are.

• Foreign earned income exclusion (Form 2555) and foreign tax credit (Form 1116), choosing the approach that saves you more
• FBAR (FinCEN Form 114) when your foreign accounts total more than $10,000 at any time during the year, and FATCA reporting on Form 8938
• RSUs and options that vest while you live abroad, allocated between the U.S., California, and your new country
• Leaving California: California does not follow the federal foreign earned income exclusion, and the FTB may still treat you as a resident if you keep strong ties here
• Catching up on missed years, including the IRS Streamlined Filing Compliance Procedures when you qualify
• Automatic June filing deadline for taxpayers living abroad, with any tax still due by April

Planning Ahead

• Estimated tax planning using the safe harbor rules (110% of last year’s tax if your income is over $150,000)
• Gifting appreciated company shares to charity
• Startup equity and exit questions, including how California treats gains that may be federally excluded as qualified small business stock (California does not follow that federal exclusion)
• Coordinating with your financial advisor and estate attorney

How We Help

• Tax preparation for tech employees, founders, and their families
• Equity compensation review: RSUs, ISOs, NSOs, and ESPP
• Relocation and multi-state returns
• Expat returns, FBAR, and foreign income reporting
• Secure digital firm: upload, e-sign, and meet by video from anywhere
• IRS and FTB notice response, audits, and back taxes
• Year-round tax concierge advisory

Common Questions

Why do I owe tax when my company already withheld on my RSUs?

Employers usually withhold on vesting shares at flat supplemental rates, often 22% federal and 10.23% California. If your actual bracket is higher, the withholding falls short and the balance shows up at filing time, sometimes with an underpayment penalty.

My 1099-B shows a cost basis of zero. Is that right?

Often it is not. The value of your RSUs was already taxed as wages on your W-2. If the basis is missing or shown as zero, you can end up paying tax twice unless the basis is corrected on Form 8949.

I moved out of California. Do I still owe California tax on my RSUs?

Possibly. California can tax the part of your equity that was earned while you worked in California, generally based on your California workdays between grant and vest. We allocate it correctly on your nonresident or part-year return.

I work remotely for a company in another state. Where do I pay tax?

California generally taxes California residents on all of their income, and taxes nonresidents on work performed in California. Some states, such as New York, may also tax remote employees of in-state employers. We sort out where tax is owed and claim credits so you are not taxed twice on the same income.

I live outside the U.S. Do I still need to file?

Yes. U.S. citizens and green card holders file a U.S. return on their worldwide income wherever they live. Exclusions and credits often reduce or eliminate the U.S. tax, but you must file to claim them, and foreign accounts may also need an FBAR.

Do I need to meet you in person?

No. We are a secure digital firm. You upload documents to our encrypted client portal, sign electronically, and meet with us by phone or video, from the Bay Area or anywhere in the world.

This page is general information, not tax or legal advice for your specific situation. Tax rules change; we apply the rules in effect for your tax year.