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New Member
posted Feb 15, 2021 11:40:57 AM

How should I classify Performance Stock Unit awards in 'Stocks Mutual Funds, Bonds, Other' section? It's not an available option to select in the dropdown.

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2 Replies
Expert Alumni
Feb 21, 2021 10:50:00 AM

It depends! A performance award is a grant of company shares or units in which the recipient's rights in the shares or units are contingent on the achievement of pre-established performance goals, and restricted until the end of a set performance period.

Summary:

  1. When you receive an RSU award, you don't actually own the stock until it vests. Accordingly, there is nothing to report at the time of the award. 
  2. Once the stock has vested, the fair market value of the stock gets reported as ordinary income, usually in box 1 of your W-2. In some companies, employees can earn dividends from unvested RSUs — these are also reported in box 1 of their W-2 forms.
  3. After vesting, you own the stock outright. Should you later sell those shares, you'll get a 1099-B which will report the gain or loss from the sale.

Returning Member
Feb 22, 2021 6:52:24 PM

Well What if you have been told that 1099-B's will not be issued, then How do you input a sale of vested shares ?