My RSU grant was in Seattle. If I move to Bay Area, when my RSU vests would I be paying extra taxes because of CA State Tax? Or would be taxed at zero state income as it was granted in WA?
CA state tax. LOL
Dude. You got some wishful thinking going on. You live in CA, you pay CA taxes. There's no way to hack this. If you are transferring make sure you get HR to adjust your base accordingly for the higher COL in CA.
Dude thinks he found a tax loophole 😂
Thanks! Three questions: 1. What happens if you transfer mid year? 2. So if I move, I should move after my next vest date to reduce tax burden in CA? 3. If I move during this year's performance cycle, would the next year's stock grant be adjusted for CA?
Not when granted, but vests as income. If you live in CA you pay CA state income tax.
Awesome. Thank you! I'm guessing this also applies to ESPP - date of purchase and release is when it gets taxed?
You live ca you pay ca. Full stop.
Not accurate. In some cases you pay CA tax for stuff that happened before you moved to CA.
No. You live ca you pay ca. This does not necessarily mean you don’t live ca you don’t pay ca. So i am still correct.
If this was the case, how come Uber employees didn't move to Seattle/Austin pre-ipo? Is it because they're already "vested"?
Most people don’t move for tax evasion purposes
Doesn't make sense. Why wouldn't one move to optimize earnings? I'm sure folks there were millionaires and could have made extra $$$. And move back to CA later?
What you can do is stay living in WA and fly down to your job in CA once per week, renting an Airbnb close to work for as many nights as you need. Slowly transition into 1-2 WFH days a week. Sounds crazy but people do it for high pay and lower COL/taxes. Better than megacommuting but gotta be dedicated to get around CA taxes with a CA job!!
RSU tax based on where it was granted. Speaking from experience as an employee who relocated.
Woah. So if you move from WA to CA and my grants were in WA, you won't pay additional state taxes when your stocks vests in CA? Or you pay and get a refund later on?
recommend getting a second opinion. if based on grant location it would be much easier to game.
🙄