DawnC
Expert Alumni

Get your taxes done using TurboTax

When you receive an RSU, you don't have any immediate tax liability. You only have to pay taxes when your RSU vests and you receive an actual payout of stock shares. At that point, you have to report income based on the fair market value of the stock.   If none of the stock was sold, you don't have to do anything.   But when you do sell the stock, the additional compensation that is included on your W-2 will be factored into the gain or loss that is reported then.  

 

After your stock vests, gains or losses from future sales will be reported on Form 1099-B, like any other stock sale.   The amount of compensation added to your W-2 will be part of your cost basis when the stock is sold.    

 

Please see Paying Your Taxes at the bottom of How to Report RSUs or Stock Grants on Your Tax Return.  

 

 

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