Equity compensation that was granted in non-resident state

[DaveF1006]

@yashK  This is evolving into a legal interpretation rather than a taxable one. I am about to suggest that you contact someone in Colorado, either a CPA or a Tax Attorney to try to understand the legal interpretation of Colorado-sourced income. 

I read over Rule 39-22-109 pretty thoroughly. I did read the section where it talks about deferred compensation. It states, "Deferred compensation is Colorado-source income to the extent it is income derived from a Business, including employment, carried on in Colorado". Even though the business is headquartered in California, it is a business that is carried on in Colorado. If this is the case,  then deferred recognition of any income from sources in Colorado remains Colorado-source income when such income is finally recognized".  

You also have to look at the legal interpretation of income derived. My interpretation is that it was sourced while living in Colorado and still should be reported as Colorado-sourced income as a best practice. Again, you may need to consult someone who can give you a legal opinion on this.

[yashK]

@SeePlanet So do you tell your employer to pay some taxes to your old state every year ? Does your employer withheld taxes with your old state as well ?

[User234111]

I don't think this is right. That article pertains to federal taxation of RSUs. State taxation of RSUs can be different. While no tax liability is due when the RSU is granted, the state where you were living when the RSU was granted can be owed tax even if you live in a different state when the RSU vests. @DaveF1006