I work for a company where I receive Restrictive Stocks (RS) in etrade brokerage account.
It is vested 1/3rd per year after initial year.
When some stock are vested, I see only about 65% of the amount of the stock as sellable.
When I look at the Plan release Confirmation document, I see that all the taxes and Medicare, SS taxes calculated. The tax Payment Method is Withhold Shares.
My questions are:
Are the taxes calculated and withheld at the time of the release?
It seems that these taxes show up on the next paystub, so they are included on W2.
I got these shared released on 6/1/2022, and I did not sell them that year, but in July of 2023.
If the value of the shares doubled since the release last year, should I expect more taxes this year or is it covered by taxes in 2022?
What if the value of shares drops and I sell them then, do I get tax deduction in that year?
Thanks!
