Question

Taxes on RSUs granted in New York that vest in Florida

Forum|Forum|5 years ago
March 3, 2021
1 reply
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I've been granted RSUs that vest over 4 years in New York.

The first 1/4th vests after 1 year. Then the rest vests monthtly for the remaining 3 years.

I'm trying to determine what NY will tax if I move to Florida within the first year (before they vest) or in the third year.

M

mglauner

Yes, when your RSU vests it would be considered unearned income in the state where you reside when you receive it.

When you receive an RSU, you don't have any immediate tax liability. You only have to pay taxes when your RSU vests and you receive an actual payout of stock shares. At that point, you have to report income based on the fair market value of the stock.

Click this link for more info on RSUs or Stock Grants.

This link gives details on How to Allocate Income for a Part Year Resident .

T

telljcAuthor

Once it's considered earned, how much will NY try to take after I've left?

T

TomD8

One follow-up question to this topic. If the individual subsequently sells the shares that were included in compensation for a capital gain, is that capital gain subject to tax in NYS?

@slori1982 --

A capital gain from the sale of stock is taxable by your state of residence at the time the sale is made.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.