Thank you for the explanation. Yes, as you mentioned, they showed up in my W2. And yes, I follow that nothing is reported until I sell...
So, if I sell now (2020), then when I do my taxes for 2020 I'd report this in TT. you report the sale with a basis of $10 per share or whatever it is. you'll end up with either a capital gain or capital loss. capital losses are limited to $3,000 1/2 that if MFS
BUT, and this is my BIG question... the stuff/TAX that was reported earlier on my W2, how do I get that back??? you don't get it back directly you can give the stock to charity - you get a deduction for its Fair Market value at date of contribution or you can sell and the give cash to charity. chairity is part of itemized deductions. For itemized deductions (medical in excess of 7.5% of adjusted grosss income, taxes limited to $10,000 MFJ or Single or $5,000 MFS, mortgage interest which can be limited and charitable contributions to be of any benefit they have to exceed your standard dedution for 2020 - $24,800 MFJ or 1/2 that single or MFS
The 'sell transaction' will be this year. BUT it is NOT actually a sell!!! It will be a GIFT, a 'transfer in kind' to CHARITY -- and for this there is ZERO taxes! (BUT they were already taken out in that W2!)
(according to this: https://www.fidelitycharitable.org/giving-account/what-you-can-donate/donating-stock-to-charity.html)
donatng stock to charity is not really a gift in the tax sense it is a deductible charitable contribution as described above
So, those TAXES paid earlier on my W2, I need to get them back because there shouldn't have been any taxes paid on stock donated to charity!
sorry but taxes don't work as you hoped, at best you'll get a charitable deduction for the stock and any cash given to charity. you can't avoid the compensation (w-2) consequences of excerising RSU's
