Im getting 30k in rsu each year and was wondering how much tax i have to pay at the end of each vest period. Is it really close to 40%? How much of the 30k will i actually receive? Im asking specifically for california state.
You will have tax deducted at time of vest and when you file taxes use 1099 provided by them to report tax withheld and ultimately your tax liability will be work out to what it is supposed to be.
W2 will reflect the amount of taxes paid for RSUs. 1099 may not necessarily show that
About 60% on average so you'll net about 18.
60 percent in tax? That seems a bit much
Isnt it intuitive that he/she was referring to the post tax?
RSUs are as good as cash. Say 10 RSUs vest on one day, and the stock price on that day is $5 per share. For the IRS, it is the same as your company having paid you $50 on that day. They’ll tax you on that $50 income. It’s the same as if your company gave you $50 cash and you bought company shares with that money. You could have bought other companies’ shares or bought frozen yogurt instead. But thats a separate matter. IRS will tax you on the capital gains when you make a killing on that frozen yogurt.
If you want a snack, though, pick the yogurt over RSUs.
I thought capital gain is 12% in the US?
It’s around 40% withheld, about 9% California and 30% federal. Could be even higher depending on your bracket
I also got deducted FICA taxes from rsu. Is that the standard?
Don't forget payroll taxes, property tax, and sales tax. They won't change the amount withheld; just don't forget you're paying them.
Around 15-18k.
Wow.... guess its about 40 percent then....