Why Facebook Gets a $429 Million Tax Refund

What's Hot


The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Where to Sell Your Stuff for Top DollarAround The House

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

21 Restaurants Offering Free Food Right NowSaving Money

20 Simple Hacks to Make Your Stuff Last LongerAround The House

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

12 Surprising Ways to Wreck Your Credit ScoreBorrow

9 Secret Ways to Use Toothpaste That Will Make You SmileAround The House

The 2 Types of Music That Most Improve Dog BehaviorFamily

A new report suggests Facebook is getting special tax treatment. Actually, the company just screwed up.

A new report from the Citizens for Tax Justice (fun name) says Facebook didn’t pay “even a dime in federal and state income taxes” this tax year. It also highlights the $429 million the company will get refunded.

If that report were all you read, it would sound pretty outrageous. But what it minimizes is the reason behind the refund – the same reason many Americans get refunds. They overpaid their taxes. In our case, it’s often because we’re giving Uncle Sam an interest-free loan by having too much withheld from our paychecks. In Facebook’s case, it’s a one-off stock situation related to the company going public last year, according to Business Insider.

At that time, employees suddenly owed tax on restricted stock Facebook had been dishing out to them. Basically, they owed four years’ worth of taxes on vested stock all at once. Facebook handled the situation by withholding some of the stock it would’ve otherwise continued to grant employees – $2.86 billion worth – and paid that in taxes on employees’ behalf.

And as it turned out, after the expenses were added up, they had overpaid by about 15 percent: $429 million. Hence the refund.

It’s also worth noting CEO Mark Zuckerberg donated 18 million Facebook shares to charity in December.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: House Hunters: Beware of These 6 Mortgage Mistakes

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,795 more deals!