I was employed by my employer while I was in the UK. I received RSUs while I was there. I moved to the US in 2024 and I qualify as a tax resident. From what I understand, I will be taxed only on the US portion of the RSUs for federal tax purposes (Ex: If I was granted 1000$ worth of RSUs at the start of 2023 in the UK, and I moved to the US in Jan 2024 and the 1000$ were vested in Dec 2024, I should pay the US federal taxes only on 500$ and UK taxes on the other 500$). My stock broker already withheld the taxes according to the above logic
My W2 reports my wages by including the entire 1000$ in it. How do I deduct this RSU component from the wages?
What I tried:
1. I cannot claim Foreign Earned Income Exclusion (FEIE) as I wasn't physically present overseas
2. If I claim Foreign tax credit, I am charged substantial Alternate Minimum tax (AMT) so that doesn't work as well.
What's the recommended way to reduce the wages shown on W2 in this case. Should I manually adjust my Taxable Income and attach an explanation statement?
