CoffeeBreak
Returning Member

Changed Office from CA to NY and started working remotely from abroad

Hi,

 

I've been a CA resident since 2017 and my wife since 2019. For most of the 2021 I worked for my CA employee while my wife continue to take care of our home and baby. In the September of 2021 I was officially transferred by my employee to NYC office. At the same time I left the USA and started working from abroad (Europe) - I moved there with the rest of my family (wife & baby) and cut all of my ties with California state. I did not establish a residency in NY - I just got my NY driver license as I wanted to get rid of my California license and a postal box over there for some formal reasons related to my employment.

 

Now, my employee granted me RSUs (Restricted Stock Units) back when I was working for them in California and part of these RSU vested when I was working from abroad for my new office in NYC. The vest happened in in 11/2021.

 

Now, due to the way California taxes RSUs I need to pay California taxes on the RSU that vested in 11/2021 even though I worked for my NYC office at the time. At the same time NY also wants to tax this income since they consider it to be NY sourced income. 

 

I'm trying to figure out how can I avoid double taxation on my RSU vest that happened in 11/2021. Should I pay my California state tax and claim a tax credit for the paid CA taxes on my NY non-resident state income tax return? Can I even do that as a NY non resident?

 

Thank you for all the help in advance.