DavidD66
Expert Alumni

Investors & landlords

Instead of #1 or #2, I would say both.  For your RSUs, they are taxable as ordinary income when they vest, and subject to payroll tax withholding.  The value of the RSUs on the day they vest should have been included in box 1 of your W-2.  If your Form 1099-B does not show the cost basis as the value when they vested, then it will need to be adjusted.  It is not necessary to go through the Employer Stock section, you can just adjust the basis like non-employer stock.

 

For stock acquired through an Employee Stock Purchase Plan (ESPP), I strongly recommend you go through the Employee Stock section, as you will need to calculate ordinary income on at least part of your gain. 

 

Form more information see the following:

 

Employee Stock Purchase Plans

 

How do I enter Employee Stock Purchase Plan (ESPP) sales in TurboTax?

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