RSU awarded in Canada vested in the USA

Forum|Forum|3 years ago
February 9, 2023
1 reply
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Hi,

I am a Green Card holder, I moved to the USA a couple months ago from Canada. I am planning on filing as Dual-Status Alien. While in Canada, my employer awarded me some RSUs, and some vested after I moved to the US. My employer prorated the amount subject to taxable income based on how many days I spent in the US between the day stocks were awarded, and the date they were vested, and reported the rest as canadian income.

My question is: does the amount of the RSU income reported as Canadian is liable as foreign-earned taxes in the US? Or is it considered to be income from before I moved to the US, and then is not liable because I'm filing as dual-status (i.e. I was not US resident at that time)?

Stocks

HopeS

Yes, the RSU allocated to Canada should not be taxed in the U.S. Because of U.S./Canada treaty, you should not pay taxes on the RSU reported on your Canadian return since this would be considered double taxation. You should only be liable for taxes on the RSU allocated to the U.S

The U.S./Canada tax treaty alleviates tax issues for U.S. Citizens and residents living in Canada and Canadians living in the U.S. One of the purpose of the tax treaty is to solve the issue of double taxation mentioned above.

@Matth S

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Matth SAuthor

@HopeSDoes that still apply for RSUs vested while I was resident of the US? When I file my taxes do I still need to claim this income along with Foreign Tax Credit, or do I just report the numbers on my T4 and W-2 respectively for Canadian tax return and US tax return?