How to show the apportioned overseas RSU income on W2

[nevink]

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?

[DaveF1006]

To clarify, did you work for the same employer in both countries?

[nevink]

Yes, I worked for the same employer in the UK and in the US. I moved countries while being employed by them

[MarilynG1]

RSU shares are taxed when Vested.  If you vested while in the US, the income was added to your W-2.  

If you then sold shares, take the amount added to your W-2 and divide by number of shares vested, to determine the Cost Basis per share (which is added to the Vest Price per Share).

You wouldn't need to reduce the income shown in Box 1 of your W-2, if this applies.

Once you know your Cost Basis per share, you can enter your 1099-B as a regular stock sale, with the correct Cost Basis.

Here's more detailed info on RSU's and Taxes.

@nevink