NRI Playbook

How much tax will you owe on your RSUs?

Add each vest and when you plan to sell. We show the tax at vest, whether your employer withheld enough, and what you keep from any later gain.

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How this works

When RSUs vest, the value of the shares is taxed as wages and appears on your W-2. Employers usually withhold federal tax at a flat 22%, or 37% on amounts over $1 million. If your marginal rate is higher, you owe the difference when you file.

If you keep the shares, any later gain or loss is a capital gain or loss, measured from the price on the vest date. It is long-term only if you sell more than one year after the vest date. Selling on the anniversary is still short-term.

A negative tax on a gain is a saving from a loss, assuming the loss offsets other gains. Sales after a move to India are flagged: while you are RNOR, India generally does not tax gains on foreign shares, but once you are ROR it can, with a credit for US tax under the treaty. This planner does not calculate Indian tax.

The spreadsheet has room for 30 vests and uses the same tax rates. It also shows the tax your employer withheld, how much more you would keep by waiting for long-term rates, and your vest income for each calendar year.

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Common questions

How do I find my price at vest?

It's on the vest confirmation or release statement in your stock plan account (for example Fidelity, E*TRADE, or Schwab), usually labeled fair market value or FMV.

What should I do if I'll owe more at filing time?

You can raise your withholding with a new Form W-4, or make an estimated tax payment. Either one avoids a large bill, and possibly an underpayment penalty, in April.

Is what I type saved anywhere?

Only in this browser, so your entries are still here if you come back. Nothing is sent to NRI Playbook. Use Start over to remove them, for example on a shared computer.

This tool gives estimates for planning. It is not tax, legal, or investment advice. Check your situation with a qualified cross-border tax professional.