- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
This is a good answer, but a bit hard to follow.
Remember, in the case of sale of RSU (Restricted Stock Unit) shares, there will be no compensation income (i.e., bargain element) because that compensation was already included in your W-2, box 1 (and similarly noted as a line item in the comment box 14) in the year the RSU shares were given.
So, for the sale of RSU shares, there is no compensation income to report in the year they are sold.
Note also that RSU are not ESPP; the former have the tax on their bargain elements paid in the year given (reported by company on W-2), while the latter have their bargain elements paid in the year sold (reported by you on Sch. D).
PS--Turbotax seems to have trouble recognizing what is "RSU" mentioned in W-2 box 14 -- it's always a question asked during the Review step. The drop-down list doesn't show any relevant choices, so you're always forced to select "Other" from the bottom of that drop-down list. Since this box is simply a comment field, you can select anything you want. Hopefully, next version year, we will see a drop-down list item that says "Restricted Stock Unit" 🙂