RSU - federal tax withheld not included on W2
Hello,
I have been trying to solve this problem for the past few years, and likely have messed up past returns. When my husband's RSUs vest, they are automatically taxed (federal, state, medicare, fees, etc.). Shares are sold to cover the tax liability, regardless of whether we sell the shares or not. When we get his W2, the vested RSU amounts are showing under box 1 for wages, but the federal income tax withheld is not even close to what was actually withheld upon vesting. So, in effect, it looks as if only about 18% tax had been withheld, but in reality his shares were taxed at 38%, consistently. The 1099-B also shows "nothing" for federal taxes withheld, and only shows the cost-basis of his shares. I am so confused on how to enter this properly in TT. This year, we got a tax bill for $190,000 from the IRS (his regular income is 200k, and the RSU taxes were automatically withheld at 38%). The IRS told me I didn't owe anything in the end, but I am wondering if our return would have been bigger. Any help would be really appreciated!
