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mofiggy
New Member

A chunk of my husbands RSUs vested in 2018. I am now seeing that the basis needs to be reported for vested RSUs. Where can I check that on my 1040 from 2018?

 
3 Replies
RobertG
Expert Alumni

A chunk of my husbands RSUs vested in 2018. I am now seeing that the basis needs to be reported for vested RSUs. Where can I check that on my 1040 from 2018?

That information will not be on your 2018 return.

 

RSUs are taxed when they vest. Income is reported on the W-2 and shares are withheld to cover the tax on the shares. Nothing else is reported on the tax return until the shares are sold.

 

A 1099-B is issued when the shares are sold. The basis of the shares is the market rate of the shares at the time of vesting that was reported as income on the W-2. When the sale is reported there will be a capital gain or loss. If sold the same day they vest, there will be a small capital loss due to the sales fee.

 

To report the sale in TurboTax:

  1. Enter the 1099-B and select guide me step by step.
  2. To answer the questions you will need the grant information from his employer.

 

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mofiggy
New Member

A chunk of my husbands RSUs vested in 2018. I am now seeing that the basis needs to be reported for vested RSUs. Where can I check that on my 1040 from 2018?

Thank you!!!  I think I see.  When we sell and do the 1099-B we calculate the basis based on our records (in this case etrade website) as opposed to it being listed at the time of vesting?  I've read a few things that say things like this: "In that year, you will see them show up on box 14 of your W2 with a code of “RSU."  As I read it, it was saying that would still be included in the wages of box 1 but box 14 would have the amount of just the RSUs separated out which would equal the basis.   But I think I'm mixing up different things here. 

AmyC
Expert Alumni

A chunk of my husbands RSUs vested in 2018. I am now seeing that the basis needs to be reported for vested RSUs. Where can I check that on my 1040 from 2018?

The IRS changed the way things are reported last year. It used to be all of your information in one place on your W2 when you sold. Now, you must be careful and keep your current W2 until you have sold the stock.

 

I recommend that you make a financial folder that is not a part of your tax records.In that folder, you need to keep the tax year, shares of stock and the basis reported in box 14. Do this each year. When you sell the stock, you will need this information to go back and create the basis.It is good to keep year end statements for all your financial accounts in this folder.

 

The broker may or may not, have the correct basis. Your company may share your box 14 information with the broker, always, sometimes or never. You must know the basis.

 

You will receive a form 1099-B when you sell the shares.  You can adjust the basis when you enter the form in TurboTax, since it will probably not be correct from the broker.

 

Here is an  article on sale of restricted stock units

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