- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Yes, if stocks were sold to pay taxes, you should have a 1099-B that reports the sale. The vesting generates taxable compensation. It is usually reported in Box 14 (with a code U or sometimes just RSU), but it doesn't have to be. 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. Or if you had shares sold to cover the taxes. When you enter the 1099-B using the TurboTax Employer Stock sale interview, TurboTax will make sure that the compensation portion is reflected in the cost basis of the sale. If the shares were sold the same day, you may have a small loss reported from the 1099-B, but the taxes are included on your W-2.
What are restricted stock units (RSUs) and how do I report them?n TurboTax?
**Mark the post that answers your question by clicking on "Mark as Best Answer"