That’s really helpful. Thanks for the info!
a followup question: there seems no tax treaty between Canada and California state. Wondering if you’re able to claim California state tax back from Canada government.
I never got into a situation to claim those taxes in Canada.
Majority portion of my grant was after I moved to Canada, so California taxes are not applicable on those. Only a few that were granted when I was in California are left to vest, so the tax portion on that is not significant.
When I file my US taxes, I get the standard deduction (~25K USD) for couples filing jointly, so a major portion of my US taxes are refunded back from IRS itself. I decided not to claim any leftovers from CRA firstly because they were not significant, and secondly due to the complications of foreign tax process with both IRS and CRA.
Hi, this is a great thread! Thanks everyone, I have a similar situation and have RSUs vesting in US sourced income, I am however seeing federal, state plus OASDI and Medicare being withheld? Is this correct? I thought OASDI and Medicare don’t apply anymore right?
Medicare and OASDI should not be applied. Contact your employer and/or broker to make sure they have updated all their systems correctly to reflect that you are an international account holder now so only federal and state should be applicable.
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Hi Rohs, thanks for confirming my suspicion. HR still insists on withholding, do you happen to have any IRS or other links that I can forward to them? Thanks!
Unfortunately not. I know it for sure from both my company and my US brokerage, but nothing in writing. Try consulting it with a CPA as well if they can share something.