Hello,
I relocated from Canada to the US while working for the same company. I was awarded RSUs in Canada, but a portion of them vested after I moved to the US. When I received my tax documents, I noticed that the vested stock value was reported as part of my total income in both countries:
- My T4 (Canada) includes the full value of the vested RSUs as taxable income.
- My W-2 (US) also includes the same RSU value as part of my total income.
From my understanding, Canada has specific tax rules for RSUs if you move out before vesting, where if they were awarded while I was a Canadian resident, I owe tax on the gain based on the proportion of time I spent in Canada between the grant and vesting dates. However, my employer appears to have reported the full stock value as taxable income in Canada rather than a prorated amount.
Is my employer correct in including the full RSU value on both tax forms? More importantly, how can I avoid double taxation in this situation? Would I need to claim a foreign tax credit or request an adjustment?
I appreciate any insights! Thank you in advance!
