RSU Grant and double taxation?

[DSSS1234]

I already knew that and that's not the answer that I am looking for. 

[rohanparolkar1]

You’re asking why the total amount owed stays the same regardless of whether the cost basis for your RSU sale is 0, or if it’s 1000000, right?

As the experts stated previously, the cost basis is going to influence the Capital Gains part of your taxes.

If you lost over $3k in Capital Losses this year, then it doesn’t matter what your cost basis is for those RSUs. https://www.investopedia.com/articles/personal-finance/100515/heres-how-deduct-[product key removed]...

If these RSUs are the only thing you sold all year, and the loss wasn’t greater than $3k, then the cost basis should definitely impact something if you’re earning that much. Maybe your version of TurboTax has a bug. Intuit’s platforms have a lot of problems. Often times the amount owed changes after refreshing or signing in and out.

[TomD8]

@DSSS1234  wrote: "As the RSU portion is already taxed, the rest $140,000.00 only has to be taxed now, correct?"

Not correct.   The fact that a certain amount has been withheld for taxes does not mean that your RSU compensation has been taxed.  The amount withheld is an advance payment toward your ultimate taxes due - which will be determined by your total income. 

[DSSS1234]

A) No shares withheld to pay taxes from RSU $100k, total income $240k

B) $40k worth shares withheld to pay taxes from RSU $100k, total income $240k

Applying Tax bracket 24% to $240k, the total tax is $57.6k. 

A) pay $57.6k

B) pay $57.6k - $40k = $17.6k

Is my calculation above correct?

[rohanparolkar1]

Basically correct, as in, regardless of what was withheld during the year, the amount you owe should remain the same.

I don’t think scenario A exists - you are always going to have to pay taxes at the time of vesting, you don’t have the option to not pay at that time.

Also, not sure where you’re getting 24% from. Are you looking at the 24% for married filing jointly for 240k? Just fyi it is not a flat 24% of the total, that’s not how tax brackets work. 

[DSSS1234]

My point from the example is that the RSU portion $100k is already taxed (or overtaxed) and the rest $140k needs to be taxed.

Yes, the 24% is for married filing jointly for $240k total income. I know the effective tax rate will be different.