What I wish I knew about ESPP and RSUs sooner (2024, USA, California)

Re:What I wish I knew about ESPP and RSUs sooner (2024, USA,... by rrdharan on Sunday March 17, 2024 @09:54PM (#39739854)

https://www.bogleheads.org/forum/viewtopic.php?t=247046 explains the situation (posted below).

“However, New York also has a provision called tax-benefit recapture, which essentially turns its progressive tax into a flat tax for high earners, says Eric Bronnenkant, head of tax at Betterment and a certified public accountant.”

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Re:What I wish I knew about ESPP and RSUs sooner (2024, USA,... by brewdad on Sunday March 17, 2024 @11:14PM (#39740237)

If you are at all at risk of earning $25 million in a given year, throw a few bucks at a tax advisor to ensure you avoid this pitfall.

Everyone else, carry on. Nothing to see here.

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Re:What I wish I knew about ESPP and RSUs sooner (2024, USA,... by rrdharan on Sunday March 17, 2024 @11:20PM (#39740253)

I see you made it to the fourth bullet point in the first paragraph of one of the two links.

It actually matters - or can matter, anyway - if you have any event pushing your income above $1M (if filing single) because of the change in deduction treatments.

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Re:What I wish I knew about ESPP and RSUs sooner (2024, USA,... by naniwaduni on Monday March 18, 2024 @05:38AM (#39741912)

The actual effect of recapture schemes is to increase marginal tax rates on mid-high incomes while leaving the highest brackets mostly untouched, and then lie about it.

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