While the core tax treatment of restricted stock and RSUs has not changed, the Tax Cuts & Jobs Act has provisions that directly and indirectly affect restricted stock/RSUs...
Restricted stock withholding is similar to withholding for most other forms of supplemental compensation. You can have different choices for paying taxes, or your company may automatically...
Supplemental income, such as stock compensation, is subject to one of two flat rates that are linked to rates in the income tax brackets. When the income tax rates change, as they did with the...
IRS Form W-4 determines how much federal withholding tax will be deducted from your paycheck, at least from your salary. You want to submit a new Form W-4 whenever your personal or financial situation changes. In 2020, the IRS introduced a revised Form W-4 that...
This depends on how your stock plan defines fair market value (FMV). Some companies use the...
Federal income tax is imposed on the value of the shares at vesting (or at grant if you made a Section 83(b) election, which is unavailable for RSUs). Tax is generally withheld at the flat rate of...
When too much Social Security tax is withheld above the Social Security wage base during a calendar year, your recovery approach depends on whether...
Backup withholding is a form of tax withholding on income from stock sales, along with interest income, dividends, or other payments that are reported on...
If you are a nonresident alien and do not complete and file Form W-8BEN with the IRS upon receiving stock-sale proceeds, such as those stemming from equity awards, your brokerage firm will assess backup withholding on the proceeds. To reclaim backup withholding, take the following steps...
In some ways they are similar. The tax treatment of restricted stock is the same for everyone. The reporting and withholding income is different. If you are an employee...
This tax term applies when rights to compensation are conditioned upon future performance of services or the occurrence of...
Not as you can with stock options. With stock options, tax consequences occur when...
Restricted stock units result in ordinary income to you. This occurs when...
Restricted stock results in ordinary income to you. This occurs either at the time...
Many states, counties, and cities impose income tax on their residents. Those that do have income tax almost always...
Dividends that are earned on restricted stock are considered compensation income, which is reported on your W-2 (1099-MISC for nonemployees, such as directors). Once the shares vest, dividends are no longer compensation and instead become...
For restricted stock, it begins on the day after vesting, unless...
In short, no. But you still need to report the sale on your...
The standard option-for-option exchange is not taxable. When you exchange underwater options for restricted stock, the value of the shares...
While there are some general trends, the treatment of stock options, restricted stock, and other equity awards in divorce is far from similar in all states. In general, the outcome depends on four factors...
The basic principles that apply to options transferred in a divorce settlement also should apply to the transfer of restricted stock. This would allow...
Typically, all or a pro rata portion of any restricted stock vests at death. The value of restricted stock that vests and is payable at your death will...
Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
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