I am a Washington State resident. How do you file a State tax return for equity that was granted while living in California in 2021, but vested while living in Washington

Forum|Forum|2 years ago
March 18, 2024
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Equity was granted while I was a California resident in 2021
Equity was vested in 2023, as a nonresident (Washington State resident for all of 2023)

TurboTax Online

ee-ea

Employee

No state return. WA does not have an income tax.

trevshihAuthor

Thanks for the reply! Because the equity grant was issued while I was a resident in California in 2021, I had to pay California state income tax last year (even though I lived in Washington the entire year). I will have to do the same for 2023. Do you know how I should complete this in TurboTax?

DawnC

Employee

If you lived in WA all of 2023, you don't need to file a state return, unless you have a situation described in the help article below. You only need to file a federal return for 2023. You should not have paid CA tax last year, if you resided in WA all year. It is understandable that you would have paid tax to CA on your 2021 tax return, since you lived there at that time. Unearned income is sourced to your resident state.

Reasons why you would need to file a nonresident return - do any of these apply to you?

How to file if you moved to a different state during the tax year - when did you move from CA to WA?

How to file an amended state tax return - If you did not live or work in CA at all in 2022, you can file an amended CA return to recoup those taxes paid while you were a resident of WA.

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