GeorgeM777
Expert Alumni

State tax filing

@JCQ4  The reason why the TurboTax instructions indicate that the purchase of shares in a ESPP should not be included on Form IL 4644 is because the instructions to that form specifically state that ESPP shares should not be included.  Unfortunately, the instructions for Form IL 4644 do not specifically exempt RSUs from reporting as they do for ESPP shares.  In terms of what needs to be reported, the instructions state that the following:

 

"This form is to report the gains from only the sale or exchange of securities of an employer that you received in a distribution from a qualified employee pension, profit-sharing, or stock bonus plan."

 

Admittedly, RSUs do not seem to fall neatly into the categories listed above in which reporting is required.  RSUs are a type of equity compensation through which a company pays its employees in shares of stock. The stock is “restricted” because it is often accompanied by a vesting schedule before the employee has full ownership of the stock.  Because it is a form of employee compensation, the employer will likely sell some of the RSU shares to comply with its tax withholding obligation (sometimes referred to as "sell to cover.").  

 

Prior posts responding to the question you have raised suggest that reporting is the better option and that would appear to be the best advice we can offer.  Upon review of Form IL 4644, it is a type of informational return.  In other words, you will be entering information on this form regarding the basis (cost) of your RSUs and subsequent sale, and further including information about any gain or loss.  Information on Form IL 4644, is then transferred to your Schedule F and IL 1040.  

 

Here is a link to the instructions for Form IL 4644 that you might find helpful.  

 

Instructions for Form IL 4644

 

 

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