EP 124 - California W-2 & RSU Taxes Explained - Why High Earners Pay 50% & What to do
Mon Feb 02 2026
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We unpack why California’s tax system punishes high W‑2 earners with RSUs, then map out a stack of strategies that convert stock-based pain into lasting tax savings. We share how to use charitable deductions, credits, and timing to push your effective rate down.
• RSUs as taxable income and cash flow squeeze
• California marginal brackets and 13.3 percent top rate
• Nonconformity on real estate professional status and bonus depreciation
• Excess business loss limits against W‑2 wages
• The SALT “sweet spot” between $600k and $500k income
• Advanced charitable structures offsetting 30–60 percent of AGI
• Solar and other tax credit strategies to reduce federal liability
• Withholding adjustments to fund strategies mid‑year
• Selling RSUs and pairing gains with losses for liquidity
• Why ongoing planning with a strategist compounds savings
Go to prosperlcpa.com/opportunityreport for a free customized video from me showing how much you can save
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Send us a text We unpack why California’s tax system punishes high W‑2 earners with RSUs, then map out a stack of strategies that convert stock-based pain into lasting tax savings. We share how to use charitable deductions, credits, and timing to push your effective rate down. • RSUs as taxable income and cash flow squeeze • California marginal brackets and 13.3 percent top rate • Nonconformity on real estate professional status and bonus depreciation • Excess business loss limits against W‑2 wages • The SALT “sweet spot” between $600k and $500k income • Advanced charitable structures offsetting 30–60 percent of AGI • Solar and other tax credit strategies to reduce federal liability • Withholding adjustments to fund strategies mid‑year • Selling RSUs and pairing gains with losses for liquidity • Why ongoing planning with a strategist compounds savings Go to prosperlcpa.com/opportunityreport for a free customized video from me showing how much you can save