RSU long term vs short term capitol gain

Forum|Forum|3 years ago
February 27, 2023
1 reply
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Hi,

RSU long term vs short term capitol gain seems same.

E.g: I file jointly and Tax rate is 24%, so short team RSU gain should be as ordinary income , 24% tax rate, and logn term RSU gain should be 15% as per long term Capitol Gain. I was experimenting with TurboTax Delux by increasing gain ( by reducing cost basis ), my current Federal Tax Due is $4411. Surprisingly when I increase $100 gain my federal tax becomes $4438 ( $27 more) and it is same increment for both short term (Box A) and long term (Box E). I don;t see any difference bet short term vs long term gain. If anyone has any idea ?

DavidD66

I can't explain what the program is doing, and I'm not certain what you looking for your federal tax. Obviously, your long term gain should be taxed at a lower rate than the short term gain. Try previewing your Form 1040 for each scenario to see if that provides an explanation. You can view your entire return or just your 1040 form before you e-file:

Sign in to your TurboTax account
Open or continue your return
Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
With the Tax Tools menu open, you can then:
- Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first)
- View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu