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LinuxStar
New Member

Recently moved from PA to CA. Will I get double-taxed for the RSUs granted while I was in PA but vested after I became a resident of CA?

In June 2024, I relocated from PA to CA while still working for the same employer. I had been granted RSUs in 2022, 2023 and the first half of 2024, while I was still living in PA.

 

I found that the RSUs vested after my move (e.g., in August 2024) had been withheld for both CA and PA taxes. Am I getting double-taxed? I found no information on the PA Department of Revenue website on whether the RSUs granted are also taxable by PA (unlike states like CA, MA and NY on multi-year allocation) even when I became a non-resident.

 

As I'm a part-year PA resident for 2024, should I expect only the income earned (and RSU vested) while I was in PA be PA-taxable? Is there a way to get tax credit in the CA tax return next year for the portion I pay to PA after I became a CA resident?

 

Thanks! 

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1 Reply
TomD8
Level 15

Recently moved from PA to CA. Will I get double-taxed for the RSUs granted while I was in PA but vested after I became a resident of CA?

If the RSU's were received as compensation for services performed within PA, then the income is PA-sourced and thus taxable by PA, regardless of when the compensation is received.

 

CA taxes its residents on all income, regardless of its source.

 

You may claim an "other state credit" on your CA tax return for the taxes paid to PA on the income taxed by both states.  This prevents double taxation, which is prohibited by federal law.

 

In TurboTax, you should complete the "old" state part-year resident return before you do your new home state return, so that the program can calculate and apply the credit. 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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