I got issued 600 rsu from my manager about a year ago. They are divided into 150 counts per year vesting date. That is, each following year 150 is vested and become available to me for selling. Just a few weeks ago first vesting date has cane upon and I sold it immediately upon vesting. However on my payroll, I saw I was taxed at 43% of the transaction. However from rsu definition, any difference between sale at vesting and grant (which is zero) is counted as a ordinary income which I currently pay around 25% of my income. So I am wondering should I expected to get Somme refund on this? Addititonally If I hold the stock and sell it later then the difference between the FMV of latter selling date and vesting date's FMV is considered capital gain. So I am assuming here it will be 25% or 40% depending on the time (1year to be considered long term capital gain) passed between later selling date and vesting date. Is my thought process right on these subjects? Here is the excerpts from investopedia definition regarding the term rsu tax: "The amount that must be declared is determined by subtracting the original purchase or exercise price of the stock (which may be zero) from the fair market value of the stock as of the date that the stock becomes fully vested. The difference must be reported by the shareholder as ordinary income. However, if the shareholder does not sell the stock at vesting and sells it at a later time, any difference between the sale price and the fair market value on the date of vesting is reported as a capital gain or loss."
Actually that definition was for restricted stock which is not quite the rsu. But rsu still seemed to be taxed as ordinary income so my question remains valid I guess. I put the excerps for rsu fax below: TTaxation of RSUs The taxation of RSUs is a bit simpler than for standard restricted stock plans. Because there is no actual stock issued at grant, no Section 83(b) election is permitted. This means that there is only one date in the life of the plan on which the value of the stock can be declared. The amount reported will equal the fair market value of the stock on the date of vesting, which is also the date of delivery in this case. Therefore, the value of the stock is reported as ordinary income in the year the stock becomes vested.axation of RSUs The taxation of RSUs is a bit simpler than for standard restricted stock plans. Because there is no actual stock issued at grant, no Section 83(b) election is permitted. This means that there is only one date in the life of the plan on which the value of the stock can be declared. The amount reported will equal the fair market value of the stock on the date of vesting, which is also the date of delivery in this case. Therefore, the value of the stock is reported as ordinary income in the year the stock becomes vested.