How? rsa ex. 10 shares $1, 3 withheld taxes, 7 shares remain 2/1/20. 4/1/20 7 shares sold for cash @ 0.09. How to report?

[AmyC · Accepted solution]

7 sh ABC, basis $7, sales price (on 1099-B), $0.63

Your basis could be a little higher to cover the cost of selling the stock.

Once the stock has vested, the fair market value of the stock gets reported as ordinary income, usually in box 1 of your W-2. In some companies, employees can earn dividends from unvested RSUs — these are also reported in box 1 of their W-2 forms.

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s. This will protect you down the road as proof of your basis in your various investments. As you go through life, rollovers, RSU sales, and more will be captured for you.