Frequently Asked Questions
What is ordinary income for RSUs?
When RSUs vest, the IRS treats the fair market value of the shares on the vest date as ordinary income, taxed at your marginal federal and state rate. This is different from capital gains, which apply only when you later sell.
Why does my employer withhold at 22 percent but I owe more?
The IRS supplemental wage withholding rate is 22 percent up to one million dollars. If your total income pushes you into the 24, 32, 35, or 37 percent bracket, the difference is owed when you file your return.
What is FICA and why is it included?
FICA is the combined Social Security (6.2 percent) and Medicare (1.45 percent) employee tax, totaling 7.65 percent. RSU vesting income is subject to FICA up to the Social Security wage base.
How do stock options differ from RSUs here?
For non-qualified stock options (NSOs), taxable income is the difference between market price and exercise price (the spread), not the full value. Enter your per-share cost basis to model this. For ISOs, the AMT calculation is separate and not modeled here.
Provided by AllCalculators.io
Free online calculators for everyday. No registration required.
Estimates only. Not financial advice.
Financial Disclaimer: Estimates only. Not financial advice.
This calculator provides estimates for informational purposes only. Actual financial outcomes depend on market conditions, personal circumstances, and decisions. Not financial advice. Consult a certified financial planner before making financial decisions affecting your future.