Gemifi offers two reports, a State Tax Report and a Taxable Activity Report, which can be reviewed in preparation for tax season or when estimated taxes are due.
Downloading reports
1. To download the available reports, select the Reports button from the Clients menu.
2. Select the download button next to the report you'd like to download. You can change the year, or select All Years from the dropdown menu to the left of the download button.
State Tax Report: This report will alert you of the client's responsibility to file a tax return in multiple states.
When it comes to equity compensation, your work history can be just as critical as your state of residence at the time of exercise or vesting. That's because equity income is typically taxed in the location(s) where the underlying compensation was earned. In other words, the states where you physically performed services that led to the award are generally the ones with taxing rights, regardless of where you live when the income is ultimately recognized.
Most equity awards require you to perform services over a set timeframe before they become vested and unrestricted. The locations where you work during this vesting period usually determine which states have the authority to tax that income once it’s paid out. So, when you exercise stock options or receive vested RSUs, it’s not just your current residence that matters—your work history over the vesting timeline plays a key role in determining your state tax obligations.
For example, you’re granted stock options while living and working in New York, a state known for its high income tax rates. Over the next four years, you remain employed in California and fully vest in the grant. Just before you exercise your options, you relocate permanently to Texas, which has no state income tax. Despite your new residency, California will likely claim the right to tax the income from the exercised options, because all the services that earned the grant took place there.
Taxable Activity Report: This report is only available for prior years as it shows on an annual basis the income tax impact of a sale and RSUs, an exercise of incentive stock options, or any other activities that would trigger a taxable event.
For example, if it’s 2026 and we’re preparing the 2025 tax return, we’d export the 2025 report. We'd then doublecheck the calculations from employers and custodians against Gemifi's calculations for 1099s and w2s and make adjustments should they be needed.