All Posts

Hello, Thanks for your question but I would need more information . Step 3, Box 3 of the W4 withholding calculator is for spouse's wages received so far this year. Are you referring to your results as to how much to have withheld? Here is the link to the W4 calculator: https://turbotax.intuit.com/tax-tools/calculators/w4/ Mary, credentialled tax expert  

No, I would not give a W4 with a negative number in Step 3, Box 3.  They will most likely give the W4 back asking for clarification.  Try the IRS calculator for withholding.  This is my favorite calculator.  You will need a copy of your most recent tax return and most recent paystub to get the most accurate withholding.  Note that this is an estimate and should be checked any time there is a new job or change in employment.  It is also a good idea to check on your paystub withholding in June and October to correct any withholding issues.

Once you sell RSU's the only option you are left with to reduce taxes is sell other investments, stocks/bonds/crypto, that are at a loss to offset the gains from the RSU sales. But before you sell the RSUs you have several options: 1) Reduce your earned income by making/increasing pre-tax contributions to IRA, 401K and HSAs. So you reduce your other taxes 2) Use FSA, flex savings account, to pay for dependent care expenses and medical savings account 3) If your employer offers a deferred compensation plan for your RSUs, use it.  4) Sell it immediately on vesting, so no additional gains to be taxed 5) Make it a long term capital gain by holding it for a longer period. 6) Selling them over a period of time, to spread the gain out.  

This will be treated as an inheritance. You will receive a stepped-up basis in the property. The cost basis is the fair market value (FMV) of the home at the date of the last parent’s death, not the 1988 purchase price or the 1999 title change. This means that your cost basis resets to the FMV rather than the original purchase price, reducing future capital gains taxes when the property is sold. If the home was worth $500,000 when your last parent passed away, and you sold it for $520,000, your capital gain would be:  $520,000 (sale price) – $500,000 (stepped-up basis) = $20,000 capital gain This gain would be split between you and your brother (assuming 50/50 ownership), so each of you would report $10,000 in capital gains.   https://www.irs.gov/publications/p544#en_US_2024_publink100072269 is an authoritative source for Basis information.   @MWQ Thanks for the question!!

Only you can file your tax return.   Did you e-file your tax return and was it accepted? Only the IRS and your State control when and if a Federal or State tax refund is Approved and Issued.   You complete your tax return by finishing all 3 Steps in the File section. In Step 3, to e-file your tax return, you must click on the large button labeled "Transmit my returns now".   After completing the File section and e-filing your tax return you will receive two emails from TurboTax. The first email when your tax return was transmitted and the second email when the tax return has either been accepted or rejected.   Note - Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund.  Only the taxpayer listed on the tax return can obtain the status of a tax refund or a tax return.   To check the status of an e-filed return, open up your desktop product or log into your TurboTax Online Account. You can find your status within the TurboTax product

  Understanding RSU taxation is essential for proper planning and minimizing your tax liability. RSUs (Restricted Stock Units) are taxed in two key phases: At Vesting: RSUs are taxed as ordinary income based on the Fair Market Value (FMV) of the shares on the vesting date. This amount is reported on your W-2 and subject to federal, state, and payroll taxes (Social Security and Medicare). At Sale: Any gain or loss from selling the RSU shares is taxed as capital gains: Short-term if held one year or less Long-term if held more than one year RSU Tax Minimization Strategies Here are some commonly used strategies to reduce your tax burden: 1. Sell Immediately Upon Vesting Avoid additional capital gains taxes if you don’t want to hold the stock. This approach simplifies tax reporting and reduces market risk. 2. Hold for Long-Term Gains If you believe the stock will appreciate, holding for more than one year allows you to benefit from lower long-term capital gains rates. 3. Stagger Vesting Dates Spreading vesting across multiple years can help avoid income spikes. Some RSU plans allow deferral elections, though not all do. 4. Ensure Correct Withholding RSU income is often under-withheld at a flat 22% rate. Contact your plan administrator or financial institution to adjust withholding if needed. 5. Pay Estimated Taxes Quarterly If withholding is insufficient, make quarterly estimated tax payments to avoid penalties. IRS due dates are typically April 15, June 15, September 15, and January 15. Refer to the IRS guide on estimated tax payments   for more details. 6. Sell Shares to Cover Taxes Use a “sell-to-cover” method where a portion of shares is sold automatically to cover tax obligations at vesting. 7. Consult Your Plan Administrator or Financial Advisor RSU plans vary widely. Professional advice ensures you’re using the best strategy for your situation.   Good luck and Thank you!     

From the instructions on the M1NR:   Line 1, Column B — Wages, Salaries, Tips, etc. Include wages, salaries, tips, commissions, bonuses, and any other employee compensation received for work performed: • While a Minnesota resident • In Minnesota while a nonresident   So it looks like I don't report his TN income on the M1NR...  

Yes, if your long-term gains in 2025 are greater than $65,000, you will be able to absorb the entire short-term loss carryover of $65,000.  This will significantly reduce your tax liability for 2025.   Here is how it works for Capital Gains and Losses:    Offsetting like-kind gains first: Your short-term losses are first used to offset any short-term capital gains you might have in the current year. Offsetting other gains: If your short-term losses exceed your short-term gains (which they will in your case, as you have $65,000 in losses and are only anticipating long-term gains), the remaining short-term losses can then be used to offset your long-term capital gains. If, your capital gains in 2025 are less than the $65,000; in that case, after offsetting all gains, you will still had capital losses remaining.  You could deduct up to $3,000 of those losses against your ordinary income each year, and any further unused losses could be carried over indefinitely to future tax years. However, in your scenario, with gains exceeding your losses, you should be able to fully utilize the carryover.   Thank you @user17524160027  for participating in this event!  

This helps a lot.  I didn't realize that I had already paid the taxes on the original amount.  I will have to check to see what the gain amount is and as a result what the long term capital gains tax amount would be.

The tax treatment of the account depends on the type of account. If it is a 529 investment account, distributions are generally tax-free if used for qualified education expenses, which would include college tuition. This article has a good overview of these types of accounts: 529 Plans and Taxes: Deductions, Tax-Free Withdrawals & More  If it is a typical investment account (through a brokerage), gains will be taxed as capital gains. If the investment account ownership is yours/your spouse's, any gains there will be taxable to you as standard capital gains. However, if within income limits, you may be eligible for education credits for paying qualified education expenses for a dependent. This article has more information on education credits: How do Education Tax Credits Work? 

@mjspenn96 , agreeing with the answers and refs. of my colleagues @evelynm, @Tax Hero Niki  and @dev145 , I just wanted to add ( and as I see the situation): 1. Since the RSUs have vested over a period of X years, you have been taxed  and have a basis of each tranche  ( the yearly vested # ) that may be different. 2. You have already paid the ordinary tax on each of the vested tranches 3. Thus when you sell  a tranche ( or a part thereof ), your capital gain is only based on current price less basis.  Hence depending on the tranche ( or part thereof ) you sell, there may or may not be any gain to consider. 4. I am assuming that  your tax-home is US and the  RSUs are of a US entity   Does this help ?

Hi user17524160027, Yes, you will be able to apply the $65,000 carryforward capital loss from short-term sales towards your 2025 long-term capital gains.  "Losses on your investments are first used to offset capital gains of the same type. So, short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain." You can read more on that here: Capital Gains and Losses - TurboTax Tax Tips & Videos