Pay tax at sell not on vest option for MSFT RSUs?
Oct 22, 2021
15 Comments
I know AMZN has this option where they can choose to defer paying taxes on their stock vest. Do we have a similar option at Microsoft?
It sucks to have to receive only partial RAUs at vest & lose some in the form of taxes upfront. Any workarounds?
comments
Honestly though, how does it make a difference? Isn't it almost the same either way?
Paying taxes on vested stock on the same year is a IRS thing, not a Microsoft or Amazon policy. You can’t defer taxes until you have to SELL. Most plans sells a portion of your vested stocks to cover your tax liabilities (sell to cover). Some plans (MSFT included) allow you to adjust the withholding but you still have to true it up at the end of the year and pay the differences by next April 15. If the calculations shows you’ve underpaid by too much during the year, you’ll have to pay not just the due taxes but also a underpayment penalty.