VictoriaD75
Expert Alumni

State tax filing

83b elections should automatically be reported on your W2. You will not receive a separate form. The 83b must be filed within 30 days of the award, but the IRS no longer requires that a copy be filed with your tax return.

 

The award should be reported entirely in box 1 of your W2 in the tax year in which it was granted. Once you have received your W2, be sure to check this information. You may need to contact your employer for a corrected W2 if it was not reported correctly. Any associated withholding would be included on box 2 of your W2. If they did not withhold for the award, this will likely increase any tax due on your return. Any dividends earned should be reported separately on a 1099-DIV. Because these transactions are reported on a W2, tax reporting becomes simple.

 

After the stock vests, any sales transactions will be reported in the year that they occur on a 1099-B. Those transactions most likely did not occur in the year of the award.

 

How to Report RSUs

 

What is Restricted Stock and How is it Taxed

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