I moved to OR last year and there was an RSU vest (granted during my time in CA) after the move. My W2 taxed the income as OR and deduced OR taxes. But this will be partly (allocation ration) CA sourced income as well hence taxed in CA as well- which I would need to add as income in CA state tax returns.
Since I am a part-year resident in both states for 2020 and this RSU was vested when I was an OR resident, should I expect a tax credit from CA or OR to avoid double taxation?
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Yes, you will be able to claim the credit for tax paid to another state on your Oregon return- the credit applies on your resident tax return to income taxed by another state (since you were an Oregon resident when your received the RSUs).
But the link here https://secure.sos.state.or.us/oard/displayDivisionRules.action?selectedDivision=448 says this and CA does allow credit, so should I claim the credit from CA?
(a) Residents: An Oregon resident is allowed a credit for taxes paid to another state on mutually taxed income if the other state does not allow the credit. See section (3) of this rule for information on calculating the credit for an Oregon resident.
Example 1: Bob, an Oregon resident, receives partnership income derived from Virginia sources and joins in a multiple nonresident filing with that state. If Virginia does not allow a credit for taxes paid to Oregon on the multiple nonresident tax return, then Bob may claim a credit on the Oregon resident return.
Example 2: Elizabeth, an Oregon resident, receives income from California property. Because California allows Oregon residents to claim a credit for mutually taxed income on the California nonresident return, Elizabeth is not allowed to claim the credit on the Oregon resident return
Another post which says that I should probably take the credit from CA:
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2020.pdf (Page 97- Part-year residents). Is my understanding correct- I should claim tax credit from CA?
You may claim the credit on your Oregon return for
the part of the year you were a resident of Oregon if
you pay Oregon tax on income that was also taxed
by a state other than Arizona, California, Indiana,
or Virginia
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