Hi everyone! I joined Amazon in 2022 when I lived in NY. I was awarded some stocks. Later I moved to FL, stocks got vested in 2023. Total stocks released was 200. 70 of them were auto sold to cover taxes. My Morgan Stanley account shows: Federal Tax (22%)… Social Security (6.2%)… NY State Income Tax (work)… +$1,300 (5.0996%) The same $1300 amount was in my W2 as part of NY Income. However, I lived in FL for the entire year of 2023. My CPA filed taxes for me and requested $1300 to be refunded. Now, I received a mail from NYS Department of Taxation titled as Request for Information. They request 1. a copy of my W2 2. a completed Income Allocation Questionnaire 3. pay stubs for 2023, 4. A completed form IT-203-B (nonresident and part time resident income allocation) 5. A completed form IT-203-F (Multi Year Allocation Form) I’m really new to all of that and have no clue what to do. My CPA is not helping… TC: 290k
I had to deal with this when I moved from CA to NY. I needed to calculate the ratio of work days from grant to vest in NY for each vesting event and allocate the growth in stocks accordingly.
Unfortunately, as I understand it, you definitely owe taxes in NY. I also moved from NY to another state in 2023 and was in the same boat. The tax liability for each state is calculated based on what portion of time between grant and vest date you were in NY, regardless of year of grant. So you will have some (shrinking) tax liability each year in NY until that 2022 grant is fully vested.
Interesting. So my entire 4 year grant will be taxed at 5%+ NYS income tax?
If you lived in my 3 months and then move to other state then first yr it will be 3/12 of rsu vested, next yr will be 3/24 roughly … that’s the income in NY and then tax on that .. So effective will be low but annoying. That’s not the exact math because it’s calculated on the day you vested the stock. If it’s monthly then the logic is applied monethly and denominator keeps going up.
You owe in the state you worked at the time of the grant being awarded, not at the time of vest. Income should be attributed to the state from time of the award, your new state may offer you a credit for taxes paid in the old state.
You have to create a simple spreadsheet for the entire grant that shows percentage of working days in each state from grant date to each vest date. Even though you will owe something to NY for each vest, the percentage owed to NY will go down substantially with each vest.
Been in similar situation. What matters for NYC is what was the official address of your work location. If you are just working from home without having your company move you to Florida and keeping NY work address, then NY is right. You owe them taxes. Otherwise you are good
I'm not an expert but I think you're correct that you shouldn't owe NY income taxes on this. I'm also not that surprised that NY is badgering you about it. NY ofc has high taxes, so probably lots of people try to evade taxes in NY, so probably NY has gotten very suspicious of any unusual situations where someone claims they conveniently don't owe NY tax money. (I know this is how it works in CA.) I suspect if you just respond to NY truthfully they will (eventually) agree you don't owe anything and go away. But your CPA is really the one who should be answering these questions, that's literally what you're paying them for.