So I moved from MA to AZ in 2020, but I had to file MA non-resident return for the past 2 years due to some RSU grants I had received while living in MA. I'm doing the MA non-resident, and I want to make sure I do this right, I did not live in MA in 2022, but parts of the RSUs that vested were granted while in MA, am I complicating this by thinking it is 'MA sourced', or should I still check the box and it is not MA-sourced since I did not reside in MA?
Once again like I mentioned before, you count from the grant date not from the vest date. Since you are stating that the acquired date is the vest date, you have to go back and determine when those stocks were initially granted and report is as Ma sourced income if they were in fact granted before May of 2020.
These are Mass- sourced income because they were "earned" from your work in Massachusetts so you do NOT want to check for non-Mass income.
What do you mean? I live in Arizona. I do not ‘work’ in MA. When you get RSU grants in a state, even after you moved you’ll still pay taxes until it eventually falls off and you won’t pay anything. So I’ve been paying MA tax on my paychecks every quarter when those RSUs get vested.
Yes, check the box for MA-sourced income. That $11 is most likely the only reason you've been filing a non-resident MA return. It's income earned from a previous MA-sourced income, so the character stays the same until it "falls off."
I have 34 other entries like that, I just took a screenshot of one. How am I going to know a certain entry belongs to MA? Plus, the box says 'Non-Massachusetts sourced" Not "Massachusetts sourced".
That's what he meant, don't check off the box Non- Massachussets sourced because it is Massachussets sourced income.
Now, you don't have to worry about doing this 34x over and over again. To clarify, what do you mean about a certain entry belongs to Ma. Only you know that, not me unless you wish to give me some examples.
What I meant is we vest RSUs every quarter, and there are 30+ 'Sale' transactions, so I am not sure which ones are 'MA sourced' given I moved from MA to AZ in May of 2020, a lot of them have capital losses, and few of them have capital gains. Question is, do I simply check on the grant date which is 'Date acquired" and if it is from the time when I was living in MA, then I'd leave the non-MA source box unchecked. Correct? Thank you for your help!
That's right. It's considered income at the time it vests. Think of it this way, had you not had those grants in the 1st place, there would be nothing to vest and those grants took place while you were in Ma but you didn'y pay your taxes on it yet So, yes it would technically be considered Ma income. See HERE for more detail on this topic.
Good luck!
@AbrahamT Actually, I just checked my Stock plan transactions supplement doc and the oldest 'acquired date' I see is September 15th 2020, but I did not live in MA in September; I moved to AZ in May of 2020, so 3-4 months before the vest date. Do I still put those from Sep 15 2020 as MA sourced?
Once again like I mentioned before, you count from the grant date not from the vest date. Since you are stating that the acquired date is the vest date, you have to go back and determine when those stocks were initially granted and report is as Ma sourced income if they were in fact granted before May of 2020.