Can attest to this. I moved away from California in 2021 and continued to work for my employer. I pay taxes on RSUs that were granted in California as they vest in both California and my new home state. My state (and I expect most others) has a tax credit for taxes paid in both states.
If anyone finds themselves in this situation, I would highly recommend hiring a tax advisor who can help you navigate this.
> My state (and I expect most others) has a tax credit for taxes paid in both states.
I'm in the same situation but NY but opted out of this credit because for the amount I would get back on double-taxation, NY state wanted to tax me an additional 10x (and more than 50% of the value of the sold shares...) as much filing a return in their state even though I didn't earn any income there.
Plus an underpayment penalty.
I just skipped the NY return because I didn't earn any money there and shouldn't have to file a return with the state. Fuck them.
Yes this is only for grants made while you were working in California. But even if the vest happens years later and you’ve lived in another state for years, California still wants their cut.
That's correct, only for grants that were made while I was living in California. Any subsequent grants I receive in my new home state are not subject to California state taxes.
If anyone finds themselves in this situation, I would highly recommend hiring a tax advisor who can help you navigate this.