I am an Indian Citizen. I do not have green card. I moved to California USA on L1 in September 2021. I left my company and left USA in November 2022. Through out this period, I stayed in California. In year 2021, I filed 1040NR for federal and 540 NR (part year resident) for California taxation.
I was given RSUs when I was working in India. Based on their vesting cycle, some of them got vested during year 2022 when I was in California (USA). On the day of vesting, those RSUs are transferred in my share account. The complete gain corresponding to vesting has been added in my W2 (box 1 and box 16) and also shown separately in box 14.
For the duration, when I was with my company in India (before September 2021), I am subtracting/adjusting the vesting gain on my federal return and paying taxes in India for the duration attributed to India. E.g., If total hold period from grant date to vesting date is 1 year, and I spent 3 months in India out of that, I am attributing/sourcing 25% to India, paying taxes in India and for the remaining 75%, I am paying federal tax.
Now Question comes, for this vesting gain, can I adjust the vesting gain from California taxable Income shown in box 16? something similar to what I am doing with federal earning.
I sold RSUs to cover taxes associated with vesting. I am handling that as vanilla stock sell - purchase using 1099-B. Sell purchase is occurring within a span of two days.
