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  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

Thank you for the replies. My husband has very little TN income as he's taking time off work to build our house. I was assuming that the little income he did bring in will be accounted for on the M1NR, but I'm not really sure. Do I not report it since it's not taxable to MN? I'm confused. I thought I read that they decrease the credit proportionally for the amount of income that is assignable to MN, so I assume I report his income but somewhere get to say what state the income was earned. Maybe not.

Hi mjspenn96, When you say "sell $50k worth", are you considering your basis? Remember to consider your basis in the shares, as you will only be taxed on the gain-- the difference between the proceeds and the basis. 

Turbo Tax has a great tax calculator tool that will be great in assisting with estimating your taxes:   TurboTax Tax calculator  Also, you may want to stay up to date with the Big Beautiful Bill - TurboTax Blog:  One Big Beautiful Bill  Tax-reform-calculator  Here is a great link on how to report RSU's in TurboTax:   How-to-report-RSU's-on-your-tax-return 

Hi user17524233574! When you say "donating stock in my charitable donor account in retirement", it is possible you are referring to Qualified Charitable Distributions (QCDs) made directly from an IRA to a qualified charity. To add to the discussion here in this thread: What are the limits? Tax year 2025: Individual over 70.5 yrs old: Up to $108,000 Married filing jointly: Up to $108,000 per spouse; thus up to $216,000 Limits on donations to a Charitable Remainder Trust (CRT) or Charitable Gift Annuity (CGA): Individual: $54,000 Married Filing Jointly: $54,000 per spouse; thus up to $108,000   What are the limits? Tax year 2024: Individual over 70.5 yrs old: Up to $105,000 Married filing jointly: Up to $105,000 per spouse; thus up to $210,000 Limits on donations to a Charitable Remainder Trust (CRT) or Charitable Gift Annuity (CGA): Individual: $53,000 Married Filing Jointly: $53,000 per spouse; thus up to $106,000   How much can I write off? QCDs are an above-the-line deduction, and they reduce the amount of the retirement withdrawal dollar-for-dollar. In other words, during the year, $50,000 is withdrawn from your retirement account. $20,000 was sent directly to a qualified charity as a QCD. That means that only $30,000 of the disbursement is added to taxable income. This is different from what has already been discussed here, as it does not get reported on Schedule A as an itemized deduction. In fact, the benefit of a QCD is that it lowers your AGI, and a lower AGI has further impact, such as a possible reduction in the amount of taxable Social Security earnings.   Here is an article with further discussion on QCDs: https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-r/qualified-charitable-distribution/L2IyjNQkb_US_en_US And here is an article on the IRS website about QCDs: https://www.irs.gov/newsroom/qualified-charitable-distributions-allow-eligible-ira-owners-up-to-100000-in-tax-free-gifts-to-charity#