They claimed I earned way more than they paid me to leave…..
7 replies (most recent on top)
Remember those of us let go that qualified for a prorated STI bonus was paid out in 2023. So, 2023 W-2 income contains two corporate bonuses paid in 2023, instead of just the normal one in previous years.
If you were paid a lump sum severance in 2023, It's all going to be on the 2023 taxes. I didn't get lump sum, being laid off as part of the 5000 last year. I've been getting paid severance bi-weekly since the garden week payouts, and will continue to receive severance until the 26 weeks severance I earned over my time in TMOHell is completely paid out.
The tax year that your RSU's vest in is when income is reported to the IRS for you, for the value of those RSU's. That is also the tax year in which they withhold shares for ordinary income and FICA taxes.
When you sell those shares, you adjust your cost basis to account for those things. That will determine your capital gain or loss.
For example, if some shares vested in 2022, and you held onto them until yesterday, you will have already had income reported for the value of those RSU's on your 2022 W-2, and the shares withheld in 2022 would have already been recorded as ordinary income tax withholdongs, and FICA deductions for 2022. So, for that particular (hypothetical) batch of RSU's, your only concern for 2024 taxes would be your capital gain or loss after cost basis adjustments.
Regarding income/compensation you received that is not reflected on your 2023 W-2, I can assure you that the IRS won't just give you a free pass, lol. You might get a corrected W-2, or you might have actually received that income/compensation in the 2024 tax year, so you should expect a 2024 W-2 next year; or maybe you received some income/compensation that you've already been taxed on (reported on previous tax years' W-2's).
For complicated tax matters, it is always best to speak with a tax professional.
My 31 RSUs were replaced with 12, then taxed at 8. I acquired 16 of the 31 in 2021 so I did not experience an increase, but a loss.
Am I understanding that IF my entire severance is reported on my W2 as 2023 income, then I will not get a 2024 W2 or need to report it as 2024 as income?
If so, I'm satisfied with paying taxes on a net income that is 23k more than I received but far less than what my severance was.
Still... makes me wonder what's coming next and will keep me from ever reapplying. I loved this enterprise even until up until reviewing my W2s and finding this thread.
And also cobra benefits, too. That is ridiculously expensive.
Yes it does. You're just not smart enough to understand it.
W2 covers 2023 salary and your severance. Also remember that your RSU shares were vested as a part of layoff.