How to handle RSU amount in W2 that was prorated based on days in each state however only stayed in one state in 2022

[sujankhadka11]

Hello, here is my issue:

I lived in PA in 2021 for 9 months. After that I moved to CA.

I got my RSUs vested in 2022 Jan. I only lived in CA in 2022.

My W2 now contains 3 different state entries:

CA - for 2022 income State wages: $K (This is different from $X reported below). This seems to be my 2022 income.

CA - State wages $ X (looks like from RSU payout on Jan) -   Tax $Y

PA - State wages $X (same as above)  -  Tax $Z

WIll Turbotax be able to handle this case? How do i tell it to prorate based on my 2021 stay (9 month PA, 3 month CA)?

[MaryK4]

Pennsylvania taxes RSUs if you live or work in the state during part of the vesting period, even if you don't reside in that state when the award is taxed.  You will have to pay the taxes to Pennsylvania but you will be able to claim a credit on your California tax return for any taxes paid for the same income.  (Credit for taxes paid to another state.)  You will want to complete the Pennsylvania (nonresident) state tax return first, then the California to get the correct credit.

[sujankhadka11]

Hello, thank you so much for the reply.

Since i have CA income listed in two places $K and $X. Should i sum them and enter as total income for CA? Turns out turbotax does not allow specifying income for same state in two rows.

Sujan

[DianeW777]

Yes, if you have two CA entries on the W-2 for the same employer you can add the together.  You have the detail on your W-2s and will retain those in your tax file for backup.