RSUs awarded from my job vested in June. I sold in Aug. But broker is foreign: I didn't get a 1099-B and W2 doesn't mention RSUs. How to report capital gains?

[DavidD66]

When RSUs vest (the stock is delivered) the entire amount is ordinary income.  Your employer is required to collect payroll taxes, or sell shares to pay it.  Since you are taxed on the entire amount, you basis is the value of the stock at the time the award vested.  You will report the sale of the stock in the same way you would if you had received a Form 1099-B.  To do so, while logged in to your account:

• Click on "Search"
• Type "1099-B" in the search window and hit "Enter"
• Click on "Jump to 1099-b"
• Answer "Yes" to Did you sell any investments in 2018?
• Answer "No" to "Did you get a 1099-B or a brokerage statement for these sales?"
• The program will ask "What type of investment did you sell?"
• From the drop down menu, select "Restricted Stock Units (RSU)"
• For Sales Category select "Box C - Short-term not reported"
• On the page with "Next, we'll help you figure out your cost basis" click Continue
• On the screen with "Tell us about your RSU sale"
• Because your employer did not include the RSUs on your W-2, indicate that "It's for an employer that doesn't have a W-2 on this return"
• Complete the page with "Let's get some purchase info about this RSU sale"
• You have to enter a number for "Shares withheld (traded) to pay taxes, so enter 0.0001 - Add the same amount to the number RSUs awarded

Continue and answer any remaining questions

[tmatt7]

Hi David,

Thanks so much for your response. This works until I get to "What type of investment did you sell?"

The options are:

-Stock (non-employee)

-Mutual fund, Index fund, or ETF

-Bond

-Options

-Second Home

-Land (personal use)

-Land (other investment use)

-Collectible

-Personal Items

-Other

So it's not an option to list RSU's. And the only stock choice I can pick is "non-employee" stock, which isn't accurate for RSUs. I considered selecting other, but if I do that the next question is "how did you receive this investment?" the options for that are:

-I purchased it

-I inherited it

-I received it as a divorce settlement

-I received it as a gift

-Something else

None of these option seem to describe how one recieves RSU's. Do I just pick "something else"?

[KurtL1]

When entering the sale of RSU's you should select "Other"

At the bottom of the screen you should click on “What if I have employee stock?” to help you through the process.

[smr17]

I sold RSUs from my foreign employee less than a month after they became vested. The income was not included in my W-2 and I did not receive a 1099-B. The price I sold them for was the same they were valued at when they became vested a month earlier. There was no capital gain. How do I report the income? Do I still have to report it as if there was a capital gain and just report $0? 

[DavidD66]

To report the income, while logged in to your account:

• Click on "Income & Expenses"
• Scroll down to "Less Common Income"
• The last option is "Miscellaneous Income..." Click Start or Revisit
• The first option "Other income not already reported on a Form W-2 or Form 1099"  Click on Start
• Answer Yes to "Did you receive any other wages?"
• Leave blank and clcik Continue on "Wages Earned as a Household Employee"
• Leave blank and clcik Continue on "Sick or Disability Pay"
• Answer Yes to "Did you earn any other wages" on "Any Other Earned Income"
• Indicate "Emloyee compensation that was not reported on a W-2" on the Page with "Enter Source of Earned Income"
• Continue and report your RSU income.

As for reporting the sale, if it wasn't reported on a 1099-B, and there was no gain or loss, you can probably skip reporting it.