DavidD66
Expert Alumni

Investors & landlords

The taxation of RSUs is pretty simple.  The value of the RSUs are taxable as ordinary income on the date they vest.  That value is included in Box 1 of your W-2 as wages, which required taxes be withheld.  In order to pay the withholding tax, Units are either sold or withheld. Those sales need to be reported on Form 8949 and Schedule D.  Your receipt of the RSUs is reported on your W-2, so you now need to report the sales of any shares, whether sold to pay the withholding tax or for other reasons. I would not use the step by step for employee stock section of the program to report this, rather report the two transactions that are on your 1099-B just as you would any other stock/investment sale. 

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