You should select RSU's for your Form 1099-B because they have the same tax treatment (RSU's & PSU's).
When you receive an RSU award, you don't actually own the stock until it vests. Accordingly, there is nothing to report at the time of the award.
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.
After vesting, you own the stock outright. Should you later sell those shares, you'll get a 1099-B, which will report the gain or loss from the sale.
Another way you could do it is to because there is no "income tax return reporting requirement" to use the guided RSU (PSU) interview when reporting the sale except in two instances:
- The compensation associated with vesting wasn't included in your W-2 (extremely unlikely)
- You have absolutely no clue as to the basis to use for the sale (and you should know that)
So use the regular "stock sale" interview and enter the 1099-B as it reads, and then correct the basis using the mechanism provided by TurboTax.
PSUs are simply RSUs with a slightly different vesting trigger. Instead of the simple passage of time associated with RSUs, PSUs depend on staying with the company until some goal or event is achieved.
Click here for "How to enter RSU's on TurboTax Online?"
Click here for additional information on reporting RSU's.
Click here for additional information on reporting RSU's on your tax return.
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