Hi! Like the title says, it seems like I'm on the hook for serious federal taxes, which I think may be related to selling RSUs. Not sure what happened here.
Based on my salary + sold RSUs, I'm in the 35% tax bracket. On my W2, box 1 seems to be base salary + sold RSUs - pretax deductions, all good. However, I'm less sure on the number in box 2, which I imagine TurboxTax is calculating as 15k too low.
Here's my situation: I put 0 as my federal allowances on my W4, and this year I had a 1 year cliff of RSUs vested at my company. My company sold shares to cover taxes, and I received the remaining amount as shares which I sold (about ~65% of the full amount). The shares sold included federal and state taxes, and the federal rate sell-to-cover was 22%. I entered the adjusted cost basis in TurboTax to prevent being double taxed.
Is the issue that since I'm in the 35% bracket but the sold shares for federal was 22% that I must make up the difference? Or is there something else going on? Feels like I've already paid a ton of tax on the RSUs already.
Submitted March 07, 2024 at 10:00PM by Nysor https://ift.tt/Ud0wfOA
