Earn More Than $150,000? You May Be Overpaying Taxes Without Knowing It

Group 1 - The complexity of tax implications increases significantly for individuals earning over $150,000, leading to potential mistakes that can result in avoidable tax burdens [2][5] - Restricted Stock Units (RSUs) are a common form of compensation that can create withholding issues, as their value is taxed as ordinary income upon vesting [3][5] - In states with no income tax, the combined marginal tax on RSU income can range from 28% to 31%, while in California, it can approach 40% due to additional state taxes [4][6] Group 2 - The withholding gap for RSUs can lead to significant tax liabilities at year-end, especially for individuals receiving large RSU grants [5] - Large RSU vesting events can push total income above $200,000, triggering additional taxes such as the 3.8% Net Investment Income Tax and the 0.9% Additional Medicare Tax [6]