RSU TAX
This is a complex one but many people in my company will soon face this issue. I worked for the international branch of my company in Asia. Was awarded 5000 RSU on joining and paid tax on all of this amount (per Singapore law) prior to leaving Singapore 2 years later and taking on a role in the US. I’m not a citizen. So the first 2year of vested RSU is clear (I think) - no US tax required. When the company IPOs next year if I am mistakenly taxed on the stock I vest before moving to the US I will claim all that tax back. Is this correct? The rest ‘vested’ while living in the US so I guess is classed as US income? Fine. So I have paid tax on this income in advance in Singapore so how would I claim this back? Could I do this using turbo tax or would I need a tax guy? Do I need to prepare any evidences from Singapore to provide when filing the taxes? I believe I still have the tax demand notices breaking down the amounts but not sure if you provide evidence when filing taxes in US as I never did it before.
Yeah, talk to a professional with expertise in international tax. No one on Blind is going to be able to give you knowledgeable advice.
Maybe, but I wonder if others have already encountered this. International mobility is common in tech.
There is too much individual component to this. Even if someone else encountered, there are too many specific variables and ymmv. But, in general, there are provisions for you to get credit for taxes paid to another country. Get professional advice.
You can deduct taxes paid on the same income paid to a different country.
These RSUs from before you became a US tax payer are the same as any other asset you had before you came here. You only need to pay capital gains on them when you sell them, if you sell while you're a US tax payer. If you don't sell, they won't even know you had it, as tax returns only report taxable income, not assets. If their value is high you might need to report FBAR though, so check that out. If you do sell as a US tax payer, the custodian of the stock should provide documentation about the sale, including the tax basis (the amount from which you need to pay capital gains).
Talk to a CPA that specializes in international tax law. I suspect there is a tax treaty between the US and Singapore that would specify how much tax you owe and how income is recognized. The answer will be different for every country pair due to tax treaties so getting an answer from somebody who moved to the US from a country other than Singapore will not help you.
Just spend the money and talk to a CPA. You’ll likely get differing opinions here which may or may not be right.
You need to talk to a CPA or tax lawyer