How is RSU taxed? How is bonus taxed? How is equity taxed?

Cerner
rsutax

Cerner

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Amazon
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May 15 7 Comments

I want to understand what are tax implications?
Let say my salary is $155k per year.
Stock is 50k per year for 4 years.
Bonus is 15%.

Also do equity taxed differently is so how?

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TOP 7 Comments
  • Amazon sJFH60
    Salary is taxed as income. Vesting RSUs are also taxed as income based on value when they vest. Selling vested shares is taxed as capital gains based on difference in price when they vested.
    May 155
    • Groupon STCO30
      This. Also bonus is taxed as income.
      May 15
    • Amazon sJFH60
      An important thing to note is you have no tax liability on RSUs until the day they vest.
      May 15
    • Cerner
      rsutax

      Cerner

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      OP
      So you pay tax once RSU vest even if you have not sold it. It kind of sucks, so all the lyft people have to pay like 70 per stock income even though they are like way down if they vested on first day of IPO.
      May 15
    • Amazon sJFH60
      Brokerages are required by law to withhold tax on vests. By default they do this by selling some of the shares immediately that vest. So you think you are getting 100 but you actually end up with 70 or whatever. It's better than a big bill on tax day though.
      May 15
    • Coupang / Eng
      Ka-chow!💥

      CoupangEng

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      Kind of why Cash is King is such a thing.
      May 15
  • Cerner
    rsutax

    Cerner

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    OP
    Also do you pay like social security and medicaid tax as well.
    May 160

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