RSU income & moving: employer withheld incorrectly

Forum|Forum|1 year ago
March 2, 2025
1 reply
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Hello,

On June 28 2024, I moved from CA to IL without changing employers. I had two restricted stock grants that were granted while I lived in CA. These grants vested twice after my move: on July 15 and October 15. Each of these vests had taxes withheld by my employer for IL only.

I understand that since these vests were granted in CA, a percentage of each vest is taxable by CA. This percentage is equal to (amount of days since grant that I spent as CA resident)/(amount of total days since grant). Since the withholding was incorrect in case, I believe I should pay more tax to CA and file for the "Taxes Paid to Other States" credit with IL.

Assuming all of the above is correct, how would I go about fixing this in TurboTax?

Thanks in advance!

TurboTax Premier Online

Best answer by MAK70

You will have to included the part that is taxable to California on the Part Year return and pay the tax to California. Then when you complete the Part-Year Illinois return, you will have to report the income, but you will also be able to claim a credit for the taxes you paid to California, so your Illinois refund should be bigger because of the incorrect withholding.