RSU vesting questions

PayPal / Mgmt
MuPa65

Go to company page PayPal Mgmt

MuPa65
Dec 27, 2021 4 Comments

I have 131 RSUs vesting on 1/15. I am thinking of selling them and re-investing somewhere else for better returns.

I have a question on Tax deductions.

Stock Price lets say is $190
How much % tax will be deducted on the 131 worth RSUs?

TC: 200k (160k/10% bonus/RSUs)

#finance #paypal

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TOP 4 Comments
  • Dell
    Swko08

    Go to company page Dell

    Swko08
    The price you were locked these stocks will be taxed as your regular salary, however, the capital gains (I am assuming it long term) will be taxed at capital gain tax depending on your filing status and income.

    Example: You were given these stocks at $100 per stock. Then $ (100 x 131) will be considered your regular salary and hence the normal tax rate. However, because you made a capital gain on each stock which in this case is $(90 * 131). On this, you will have to pay capital income tax. You can google the income tax slabs.
    Dec 27, 2021 1
    • Meta
      🌻 girl

      Go to company page Meta

      🌻 girl
      It’s RSU not option. So the price locked is price on day of vest which is 190$ in example given by OP. So OP will owe income taxes on regular income of $190*131
      Dec 28, 2021
  • Apple / Mgmt
    user_456

    Go to company page Apple Mgmt

    user_456
    29 RSUs for tax at minimum.
    Dec 27, 2021 1