Took an internal transfer from Texas to California. RSUs vested 5 days after starting work in California. They deducted California state tax (~10%) from the total vested amount. I feel this is unfair. Has anyone had a similar issue before? Found this equation on Quora: Allocation ratio = California workdays from purchase date to vesting date / Total workdays from purchase date to vesting date Income taxable by CA = Total income from RSU x Allocation ratio. Appreciate your help in advance! Thanks
Are you talking about withholding done by your company payroll? If so it doesn’t matter, you will get the difference back when filing your taxes.
RSUs are generally operated through a brokerage account. In my case the CA state tax was withheld by the broker
Withholding can be controlled through employer for RSU. In any case, if you overpaid, you will still get it back when you file taxes.