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Level 1
posted Apr 5, 2021 5:57:28 PM

Check employee stock plan results, why the ESPP value is counted as RSU? like espp 1,000, RSU 2,000, the turbotax app ask me if RSU 3,000 is already on W-2.

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1 Replies
Expert Alumni
Apr 5, 2021 6:55:45 PM

It depends.  For tax purposes, the entire value of vested RSUs must be included as ordinary income in the year of vesting. The RSU's are reported on line 14 of W2. You must check your W2 if the restricted stock units were listed on line 14. If it were, then answer yes to the question.  Upon vesting, they are considered income, and a portion of the shares is withheld to pay income taxes. The employee receives the remaining shares and can sell them at their discretion.

 

A restricted stock unit (RSU) is a form of compensation issued by an employer to an employee in the form of company shares and are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employer for a particular length of time.