Here's the basic information: I no longer work at Uber, but last year had $630,000 worth of Uber RSUs vest (this was at the IPO price of $45). At the time of vesting, my brokerage automatically sold shares to cover taxes (as it customary with RSUs). A huge mistake I made was not paying attention to the withholding rate for federal taxes.
When my W2 came in from Uber, it turns out that only $138,600 worth of my shares was sold to cover federal taxes. That comes out to a 22% tax rate.
Of course, because I had $630,000 worth of Uber shares vested and reported in my W2, it pushed me to the highest tax bracket for 2019. I believe this is the reason why I owe so much in federal taxes.
Later last year when the stock went down to about $29, I ended up selling all my shares. I do get to report a sizable capital loss but my understanding of tax laws states I can only deduct up to $3K of capital losses against ordinary income.
I ended up using that money to buy a house - if I planned this better I would have saved that money to pay the tax bill.
I wanted to know what my options, if any, are? The only hope I had was to use the capital losses to my advantage but I don't think I can. It really seems like my only option is to figure out a repayment plan with the IRS?
Anyone at Lyft or Uber dealing with a similar challenge? It really bums me out that I have to report $630,000 in income even though I didn't get even close to that considering the stock went down.
Submitted February 04, 2020 at 04:51PM by Mondo_Cane https://ift.tt/37XVdqx
