Son is moving from NYC/NYS to WA on 2/15/25 and working for the same company. Company has employees and offices in both regions. They will process his pay as NY resident before the move and WA resident after the move. WA has no income tax (but are creeping along with long term health care tax (Son is skipping after return since purchased an LTC satisfying WA state law) and > $250k CG taxes)
He has RSUs vesting over 4 year linearly each quarter. RSUs are granted every quarter (first 4 quarters delayed until 5th quarter grant date) We are already in ~8th quarter now.
All prior grants paid NYS/NYC taxes since NYS/NYC resident. Next quarter of RSU grant occurs on ~2/18/25. We are confirming with HR they will process NYS/NYC taxes for majority of the RSU grant $s since NYS/NYC residency % of this vesting period is nearly 100%.
RSU grants beyond the 2/18/25 block don't have to pay NYS/NYC taxes.
He will have a few business trips to NYS/NYC rest of the year for 1+ week per trip. He doesn't have to pay NYS/NYC taxes during these visiting periods.
Is my understanding basically correct? Trying to be clear and thorough since NY+CA are notorious for collecting non-resident tax allocations.
Also just FYI, HR is paying far higher taxes to NYS than NYS tax rate resulting in a big loan to NYS until tax refund. I guess possession is 9/10th of the law and have some potential risks of not getting it back. Refund amount would be in the few $10ks.
