RSU sold to cover taxes

Forum|Forum|3 years ago
April 6, 2023
1 reply
4 views

I read many posts about RSU topic. Some people reported similar issues to mine, but I am not getting a clear resolution. My first portion of RSUs vested in 2022 and my employer sold about 30% of them to cover taxes. I received a report from the broker showing number of shares sold for taxes but I did not get 1099-B. The amount for total number of shares is included in my income (box 1 on W-2), but the amount for shares sold to cover taxes is not included on my W-2 tax withholding. As a result, either my compensation is higher than it was OR I am paying taxes twice on my RSUs. I contacted my employer but they were not helpful. Please advise.

ThomasM125

Level 15

It is possible that the taxes paid were just social security and Medicare taxes, not income taxes. So, they would be reported in boxes 4 and 6 on your W-2 form with nothing in box 2 (federal tax witheld.) If so, you are not getting double taxed, as the income associated with the stock vesting is reported once in box 1 on your W-2 form. You may have just not had any income taxes paid in to cover the tax on the income from vesting.

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MariaR747Author

Level 2

Thank you for your response, but I don't think it is the case. FICA taxes are about 7% and the amount "withheld" but not reported is over 30%.

ThomasM125

Level 15

After the taxes are withheld, they need to be paid in to the government and reported on a form. If they weren't reported on your W-2 form the only other likely form they would be reported on would be a 1099-B form, which may have been generated reporting the stock sale. The 1099-B form would likely be issued from a brokerage account. You need to ask your employer who that would be and then contact them for a copy of the 1099-B form.

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