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I moved to the USA with a Green Card a couple months ago. My employer awarded me with RSUs a couple years ago, and some have vested after I moved to the USA. I am filing as Dual-Status Alien, so technically I believe I do not have to report my Canadian income until the date I crossed the border to the IRS. I originally thought the RSUs vested in the US would be considered US income.

But, I realized that my employer actually pro-rated the tax withholding for both US and Canada based on how much time I spent in each country between the award date and the vest date of the stocks. So, does that mean I have to report the part my employer treated as Canadian income as foreign income in my US tax return, or is that considered to be income while I was a Non-resident Alien?

Chris W. Rea
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Matth S.
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1 Answers1

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So, does that mean I have to report the part my employer treated as Canadian income as foreign income in my US tax return, or is that considered to be income while I was a Non-resident Alien?

No to both.

From the US perspective it is US income since the US taxes worldwide income. The US considers RSUs as current income for Federal tax purposes and doesn't prorate them.

From the Canadian perspective, the part attributed to Canada is sourced to Canada and is taxed as income earned in Canada even though you're no longer there. So you'll need to work with a Canadian tax adviser on how to report this, and reconcile the taxes.

littleadv
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