When I joined Snap the grant price was ~60. Majority of the stocks vested between 60-80 last year. However, I selected withholding of 30ish percent. Now the stock is down, and I owe a ton of money to IRS. I also booked profits on stocks (not $SNAP) last year for which I'm yet to pay taxes. Now all the stocks are down, I'm -30% in net worth and owe $75k in taxes + penalty for sure (#FML). I have like $7k in my checking account. It is so messed up that I'm losing sleep for the past two weeks since I started putting the numbers together. Moreover, Snap does not pay good cash bonus. I'll probably get 10k or something after taxes. Is there any way to delay paying the amount by a couple of months? Any other way to preserve my sanity... TC: Original TC - 200k #personalfinance #investments #taxes
You can always request an extension to file your taxes
This ☝️
Filing extension != paying extension. You must pay on time, or set up a payment plan, or pay interest/penalties
Get in touch with the taxman and work out a payment plan..
Filing for extension doesn’t extend the time to pay the taxes actually. The extension is only for the filing. You can actually setup a payment plan with irs on irs.gov.
This was me in early 2021. +1 to filing late, save up man. IRS doesn’t forgive but can delay. Learn from mistakes and learn the value of stability. Look into ETFs
Wait, so what happened? You were granted stock. They took taxes out. The stock went down. So wouldn't you have to pay taxes when you sell the shares, assuming they are above the grant price? On the stock you sold with a gain, yeah, you have have to pay taxes on that amount.... It is NBD. You can get on a payment plan if you can't pay it.
> They took taxes out. yes they did but they only take the % deduction you provide. I chose the lowest % which was around 30%.
What happened to all the money? If you got $100 or whatever and they took out $30 but it should have been $40, don't you have $70 with which to pay the $10? Or did you blow it on something? Regardless, not like they are going to throw you in the joint. If you can't pay, you can get a payment plan... or just file an appeal and it will take the IRS six months to get back to you which will give you time to get the money.
Such a shitty situation to be in. So your stocks vested at a high price and you have to pay taxes on that high price?
By high price I meant your grant price which is now way less that actual stock price.
yes. the vesting price is the price one has to pay taxes on.
It’s difficult to get bankruptcy approved. Talk to a bankruptcy lawyer. It might be a good option.
you can also apply for a personal loan (and avoid negotiating with IRS about a delayed payment plan) - I did that as I was in kind of same situation than yours (and did not want to sell depreciated shares to pay the taxes)
where did you take loans from? bank or some payday shit?
Why would you owe when you are in loss? Did you sell when it was > 60?
i didn't sell enough ath that time... that's the problem
Wierd. Some shares are deducted during vesting which is the tax on that day market price. So, you should pay tax only on gains from that price. However, you actually lost so how come you owe?
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Following, because I was(past tense) a good options trader, and lost a shit ton between Jan 1 and filing.