RSU Tax for Previous State

Forum|Forum|2 years ago
February 5, 2024
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Hi all. Every year my company awards us a handful of RSUs (restricted stock) that vests every three years, with a third vesting each anniversary date. My first RSUs were awarded while I worked in Rhode Island. I moved to Tennessee ~2 years ago, which has no state income tax. Some of the RSUs that I was *awarded* while living in Rhode Island *vested* after moving to Tennessee, and on my W2 it has me paying ~$34 in Rhode Island state tax. Apparently the tax owed is based on the state it was awarded in, not vested in. Do I really need to file a state return to Rhode Island just for that amount? I asked a CPA who said I shouldn’t need to because that amount is so minimal it would likely fall under Rhode Island’s income exemption amount, but just looking to confirm. Don’t want to get in trouble for not submitting a state return, considering I’ll likely be in the same situation next year when my final RSUs vest that were awarded while I lived in Rhode Island. Thanks!

Best answer by ThomasM125

Technically, from this excerpt from the Rhode Island Division of Taxation, you are required to file a Rhode Island tax return if you are required to file a federal tax return:

Here is a link to the article: Rhode Island tax filing requirements As a practical matter, since you had taxes withheld and assuming they were sufficient to cover your tax obligation, it's not likely you would suffer serious repercussions if you didn't file the Rhode Island return.

ThomasM125Answer

Technically, from this excerpt from the Rhode Island Division of Taxation, you are required to file a Rhode Island tax return if you are required to file a federal tax return:

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