GeorgeM777
Expert Alumni

After you file

How did you determine what amount of the RSU compensation to allocate to California?  You are correct in that at vesting date, CA taxes the portion of the income from RSUs that corresponds to the amount of time you lived in CA between the grant date and vesting date.  For example, if you lived in CA for one of the three years of a three-year vesting period on your RSUs, then one-third of the income from RSU vesting will be CA income and subject to CA tax.  CA applies this tax to your RSUs even if you live out of state when the RSUs vest as happened in your case now that you live in Oregon.

 

You are also correct in that you should not be getting a CA resident tax credit.  OR may give you a credit for the tax you pay to CA assuming OR seeks to tax the same income.  Regarding tax credits--and you may have already done this--you need to complete your non-resident tax return first and then move to your resident return.  Right now, it appears you owe nothing to CA and given how CA taxes RSUs, you must have some tax liability to CA.  Thus, we expect the issue could be in the way you allocated your RSU income to CA.  

 

@Jeremy-Salmon 

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