@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?
RSUs that you were awarded after you moved out of California are not taxable income in California. (RSUs that were awarded while you lived in California and vested after you moved are partly taxable in California.)
For W-2 employees, California does not apply a non-resident income tax to income that is earned and paid if you do not physically live or work in California, even if the employer is located in California. This is true for regular wages, bonuses, and stock options.
If your move to NY is temporary, and you have maintained a permanent residence in CA that you plan to return to, then you are still a CA resident and we need to have an entirely different conversation.
Now, if you worked in California for (let's say) one week a year for mandatory training and meetings, then 1/52nd of your income each year would be treated as California income. You would have an obligation to report, although you might not get caught if you didn't. And this might affect the taxability of your vested RSUs as well as your wages. That's also a conversation we can have, if you sometimes visit California to perform work in person.
