does RSU tax flat rate depending on your state or combined tax rate including base salary? example lets say you make $100k annually as base salary and get $100k in RSU. will you be charged collectively on $200k based on your stax status and tier or seperately for base salary and RSU respectively? thanks for the help.
So basically, are we taxed two times? Income tax for RSUs. Capital gain tax on profit gaining from holding RSUs > 1 year?
I understand the capital tax on profit for short or long term gains. Question is: initial income tax allocation at the time of vesting, is that flat or a tier based for state of Washington? Also is it a combined tax rate keeping annual base in mind or applied separately?
Whenever your stocks vest, a portion of that will be allocated towards income tax. The rest are deposited into your Fidelity. If you hold onto the stock and sell it later, you will pay capital gains on the profit since the day it got deposited to when you sell. Capital gains tax is flat rate since I believe the RSUs are long term capital gains.
*if they vest and you’ve opted to sell to cover taxes.