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Retirement tax questions
No, there is no double taxation. Let's see if I can help expand on some information. If you check the document you received showing you your total taxable income from this transaction it is $,2568.9236 ($2,569). You noted this in your earlier post. Because of the nature of this stock, an income component must be included in your taxable income and it is included in Box 1 of your W-2 (even though it is only stated on a separate document and not recorded in Box 14).
Keep in mind that the $1,071 is fully credited to you as tax paid and withheld. This portion is from the shares withheld to pay the federal and state taxes on your behalf as mentioned earlier on the total of vested shares income.
For this reason, you are allowed to add the $1498 as cost basis of the stock that was sold. There is no double taxation because this wipes out any capital gain and as noted there is a small loss on the transaction which is likely an expense associated with the sale. The only income being taxed is from your W-2 after all is entered.
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