Yes, the full value of RSUs is included in your wages, including the ones cashed for your federal withholding, both are included in your W-2.
The cost and sales price of the shares sold to cover your federal withholding should be reported to you on a 1099-B. See the detail below for more information.
There is no double taxation because you will adjust your cost basis for the sales.
- The buy and sell will be basically the same dollar amounts due to the sale occurring when you were awarded the shares. (Income reported on your W-2, as well as federal withholding paid for you).
- The income reported in you W-2 is the amount that becomes your cost basis (and any money you might have paid as a discounted amount for the shares).
- Example Scenario: 10 shares sold will have a $100 (assumes $10 per share) cost basis for you and same sales price (amount awarded plus any discount cost to you, if any) the balance, $200, will be the cost basis of the ones you still hold (assumes a total of 30 shares)
- What are RSUs/PAUs and how do I report them?
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