Yes. With RSU's, California (CA) taxes non-residents on the wage income to the extent that services were performed in California from the grant date to the vesting date. See Section G of this California tax publication: Equity Based Compensation Guidelines
Your resident state will required you to include worldwide income and will give you a credit for taxes paid in CA. See the details below.
State Returns - Assumes both states require income tax returns to be filed:
- Report the income on each state return that is from the nonresident state
- Report it on your resident state and receive credit for taxes paid to another state.
Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state. Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
In most cases complete your nonresident state first.
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