GeorgeM777
Expert Alumni

Get your taxes done using TurboTax

Yes, your spouse's employer was obligated to withhold taxes when the RSUs vested.  That withholding will likely be combined with the other withholding amounts on your wife's W-2.  In order to make the requisite withholding, a company will typically sell some of the shares an employee received--referred to as a "sell to cover"--and remit the proceeds to the appropriate taxing authority.  

 

As a clue to determining whether RSUs were sold in a sell to cover situation, you might look at the amount remaining in your wife's account.  If it's something less than a whole number, then it's likely some shares were sold to cover the tax withholding.  For example, if your wife was awarded 100 shares, but only 89 remain in the account, then the missing 11 shares were likely sold to pay taxes.  

 

Did your wife sell any of the RSUs that vested?  If so, your wife will receive a 1099-B from the broker that effected the sale.  Make sure the basis as reported on the 1099-B is correct.  Sometimes a broker will not know the basis and therefore, will include zero as the basis.  However, your wife's basis in the RSUs is the value of the RSUs on the day they vested.  If you need to make an adjustment in your wife's basis, you can do that in TurboTax in the section where you enter the RSU information.  

 

@Michael16

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