RSU income & moving: employer withheld incorrectly

[wfergus2]

Hello,

On June 28 2024, I moved from CA to IL without changing employers. I had two restricted stock grants that were granted while I lived in CA. These grants vested twice after my move: on July 15 and October 15. Each of these vests had taxes withheld by my employer for IL only.

I understand that since these vests were granted in CA, a percentage of each vest is taxable by CA. This percentage is equal to (amount of days since grant that I spent as CA resident)/(amount of total days since grant). Since the withholding was incorrect in case, I believe I should pay more tax to CA and file for the "Taxes Paid to Other States" credit with IL.

Assuming all of the above is correct, how would I go about fixing this in TurboTax?

Thanks in advance!

[MaryK4 · Accepted solution]

You will have to included the part that is taxable to California on the Part Year return and pay the tax to California.  Then when you complete the Part-Year Illinois return, you will have to report the income, but you will also be able to claim a credit for the taxes you paid to California, so your Illinois refund should be bigger because of the incorrect withholding.