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stockedoptional
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RSU Vesting in Multiple States

I vested RSUs in DC and California as a result of relocating roles within the same company. Let's say I vested 2 years of RSUs in DC and 2 years of RSUs in California.

 

When my company IPO'd, they withheld taxes at the California rate for all my vested RSUs. Is this correct? Or should they have have withheld at the DC rate for the RSUs I vested in DC and the California rate for the RSUs I vested in California?

 

I have lived in California for the last two years. Do I need to pay DC taxes on those RSUs I vested there two years ago? Considering that California has a higher state tax rate, how would I claim back the extra state taxes? Can I correct this myself?

 

 

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1 Reply
TomD8
Level 15

RSU Vesting in Multiple States

RSU's that vested when you were a DC resident  are taxable by DC.

RSU's that vested when you were a CA resident are taxable by CA.

 

If DC taxes were mistakenly withheld when you were a resident of CA, submit DC Form D-40B, Non-resident Request for Refund.  You can download the form here:  https://otr.cfo.dc.gov/service/individual-income-tax-service-center

 

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