@hari wrote:
Thanks for the reply.
So in my case, would I have to file CA tax returns for 2020, 2021 and 2022? And amend my NY returns to receive the credit?
Probably not. The income is only taxable in the year the RSU was vested. You don't say when that was.
Let's guess the RSU vested in 2022 and you are working on a late tax return. The income is only reported on your 2022 return since that's when it vested.
You need to start by counting the days from the date the RSU was awarded to the date it was vested. Let's assume it was awarded on July 1, 2019 and vested June 30, 2022 (exactly 3 years, or 1095 days). Let's also assume you moved to New York on September 1, 2019. That means that, for the period between the award and the vesting, you lived 62 days in California and 1033 days in New York. 62/1095=5.66%, so 5.66% of the taxable value of the RSU is California taxable income. You file a 2022 California Non-Resident return and report 5.66% of the income as California income. You include all the income on your New York return. New York will give you a tax credit for the amount of tax you pay on your California non-resident return which will reduce your NY tax.
You only report income when the RSU actually vests, so the only reason you would file amended returns for the years in between is if part of the RSU vested in each tax year.
