slimandslam
Returning Member

How to handle 1099-DIV "cash liquidation distributions" of RSUs?

Hi folks, I have a specific scenario that, while probably not too uncommon, is a bit confusing for me.

 

1. I worked as an employee for a software startup in 2015. I received NNNNN restricted stock units (RSU) some of which vested. I left the company in 2017.

 

2. In 2019, the startup was purchased as an asset sale. In 2019, I received $XXXXX for my RSUs.

 

3. In 2019, I received a 1099-DIV which had zeros in all boxes except box #9 "cash liquidation distributions" with the $XXXXX amount. (I am in Texas so no state income tax)

 

4. In January 2020, I received a 1099-MISC with box #7 "non-employee compensation" with the $XXXXX amount.

 

Question: Having both the 1099-DIV and 1099-MISC statements confuses me. How do I treat this compensation for Federal tax-reporting purposes?