I think my employer did not correctly specify the price of RSU that got vested. What do I do?

Forum|Forum|11 months ago
April 10, 2025
1 reply
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Hello,

I used to live in NY and I received RSUs that were vesting for 4 years. 2024 was the last year they vested.

Even though I live and work in NJ since 2021, I still get two W2s: 1 for NJ and 1 for NY. I assume the one for NY with the small amount of taxes paid (Box 17: $463) is due to RSUs. However, State Wages (Box 16) contains the amount, which is about the same as my whole salary. A similar amount is on NJ W2.

Now 2 questions:

1) I assume my employer (Bank of America) incorrectly specify the amount in NY W2 and the amount should be equal to the price of the vested shares. Am I correct? If yes, how do I know the correct amount to specify in my tax return?

2) How do I make sure that these RSU taxes ($463 paid to NY) are not double taxed in NJ?

ThomasM125

You are incorrect, New York taxes all income earned even in other states, so your full salary would be listed as New York income. To compensate you for earning income in other states, when you calculate your New York tax, the rate of tax will be reduced by the proportion of your income earned in other states. So, you will report your total income to New York, but only are taxed on a fraction of it.

When you prepare your New Jersey return, look for a credit for taxes paid to another state to reduce your New Jersey tax by the taxes paid to New York.

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zzz2Author

@ThomasM125

So I left NY W2 as is, and selected to "Allocate by percentage", and calculated the percentage by dividing the price of the vested stock shares by the amount in box 1 (and same in box 16) of the NY W2.

Sound good?

ThomasM125

Yes, that is correct. So your New York tax will be the tax as calculated using your total income multiplied by the small percentage of your income earned in New York from the vesting.

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