Compensation income for RSU reporting

Forum|Forum|4 years ago
February 21, 2022
6 replies
43 views

My W2 income includes vested RSU value. While reporting the RSUs sold (going through the RSU reporting interview), I see that something called "compensation income" is generated by TurboTax.

Is this compensation income again added to my reported W2 income? I am getting taxed twice?

Can I simply report RSU sales as regular stock sale (with the correct cost basis)?

HelenC12

Level 15

Yes, the compensation is added to your reported W-2 income. No, you won't get taxed twice if you follow these instructions:

You will need to change the stock basis on the date of the sale, to the price on the date of sale.
The result is zero gain or a minor loss due to brokers commission/fees.
The IRS will expect to see that information on your tax return.

To enter your 1099-B form, see Where do I enter a 1099-B?

For additional information, see the TurboTax article: Non-Qualified Stock Options.

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Sandeep1Author

Level 2

@HelenC12 thanks for the answer. On a related note: say 50 RSUs vest (and included in my W2 income) out of which 10 are withheld for taxes (so only 40 are in my brokerage account). I sell 25 of them. In the RSU reporting interview, I enter number of RSUs vested as 50 and tax withheld RSUs as 10 and enter the correct basis. Since I only sold 25, will the compensation income for the remaining 15 RSUs get again added to the W2 income?