Does Turbotax automatically fix up overpaid/underpaid taxes from RSU's that vest?

[michael4]

When my RSU's vest, they are getting taxed at 22% Federal.  If my income tax bracket ( when filing jointly ) is ABOVE or BELOW this 22% does turbo tax automatically handle this so i do not OVERPAY or UNDERPAY my taxes?

[DavidD66 · Accepted solution]

When your RSU's vest, they become earned income, just as if you were given a cash bonus for the same amount.  Your employer is withholding federal income tax on the income creating by the RSUs at a rate of 24%.  TurboTax will determine your taxable income (including income from the RSUs), your total tax liability, and the amount of your refund or the amount you owe.  The program does not "handle this" so you do not overpay or underpay.  Rather, it determines whether you overpaid or underpaid based on the information you provided.  If you wanted to make sure you didn't overpay or underpay, you would have needed to calculate that prior to year end and adjust your withholding accordingly, or make an estimated tax payment.   

You can use the TurboTax program during the year to estimate what your tax liability will be and whether you need to make estimated tax payments, or adjust your withholding.  

The IRS also has a tax withholding estimator.  Click the following link to access the IRS tool:  IRS Tax Withholding Estimator