@GeorgeM777
The topic is not about selling RSUs. You can correct, if they are sold, it's like any other stock or investment thus there will be some capital gain/loss. This topic is strictly for RSU as part of your compensation.
Federal return does not have the same requirement to spread out RSU grants over multiple years like NY State does. It makes sense, as the purpose of NY State IT-203-F is to allocate comp between different states. This is not relevant on Federal return. To answer your question, RSU portion of my comp is not treated as something separate from my base comp, it is reported as wages in #1 of my W-2, thus it is entered as earned income/wages on fed 1040.
The purpose of NY IT-203-F shc B is not to track capital gains. There is clearly an issue on how this form was implemented in this years TT.
The user here posted a reasonable workaround:
https://ttlc.intuit.com/community/state-taxes/discussion/what-does-the-form-203-f-mean/00/1404869/pa...
But its pretty hacky and it should be fixed by TT.
