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What you put on your tax return every year doesn't really reflect your actual wealth. Even in tech most people top out at ~$200k-$250k base salaries but you may
by throwaway-1283 8y ago
What you put on your tax return every year doesn't really reflect your actual wealth. Even in tech most people top out at ~$200k-$250k base salaries but you may vest and accumulate millions in stock RSUs that you don't sell in a given year.
- ariwilson 8y agoStock RSU vests go on your tax returns.
- deleted 8y ago[deleted]
- throwaway-1283 8y agoAh ok - I'm thinking private shares
- arcticbull 8y agoThose do too. The only thing that doesn't is deferred compensation in the form of an ISO or NSO. The latter is recognized as ordinary income when exercised.
- gthippo 8y agoDon't RSUs show up on the W-2 as income though (even if you don't sell them)?
- arcticbull 8y agoThey do; RSU vesting is a taxable event. It's counted as ordinary income based on the fair market value at the time it vests and taxes are due immediately. Companies tend to withhold a percentage of the shares and sell them to cover your tax burden.
- vasilipupkin 8y agoMy working explanation is that it's actually survey data. the richest people either don't answer the survey or understate their actual holdings when they do answer.