It depends. Was your company a CA based company? If yes, then the work you performed in CA and the RSUs you received or are entitled to receive based on the work performed in CA, would be CA source income. The rule is, if a nonresident receives W-2 wages for work performed out of CA, even if it’s from a California employer, the those W-2 wages are not subject to CA income taxes. However, if a nonresident receives W-2 wages for work physically performed in CA, then the income is likely subject to CA income taxes. Thus, what matters most is not who pays the wages but where the work is actually performed.
Because you lived in IN for a period of time, and received income while living in IN, you will likely pay IN tax on that income. From your post, you will probably file a part-year, non-resident IN tax return. For NY, which is now your resident state, you will file a NY part-year resident return. If your RSUs were based on the work you physically performed in CA, then that compensation is taxable to CA as it would be CA source income. To the extent IN and NY tax the same income, you will get a credit for having paid tax to CA. Prepare your CA and IN tax returns first and then prepare your NY return. NY needs to know the tax you paid to CA in order to know how much credit to apply.
In terms of allocation, you need to first determine what portion of your RSUs is the result of work physically performed in CA. If its 30% for example, then allocate 30% of the RSU compensation to CA.
@dboshko1
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
