topic How to show the apportioned overseas RSU income on W2 in Get your taxes done using TurboTax

How to show the apportioned overseas RSU income on W2

nevink — Fri, 28 Feb 2025 14:56:32 GMT

I was employed by my employer while I was in the UK. I received RSUs while I was there. I moved to the US in 2024 and I qualify as a tax resident. From what I understand, I will be taxed only on the US portion of the RSUs for federal tax purposes (Ex: If I was granted 1000$ worth of RSUs at the start of 2023 in the UK, and I moved to the US in Jan 2024 and the 1000$ were vested in Dec 2024, I should pay the US federal taxes only on 500$ and UK taxes on the other 500$). My stock broker already withheld the taxes according to the above logic

My W2 reports my wages by including the entire 1000$ in it. How do I deduct this RSU component from the wages?

What I tried:

1. I cannot claim Foreign Earned Income Exclusion (FEIE) as I wasn't physically present overseas

2. If I claim Foreign tax credit, I am charged substantial Alternate Minimum tax (AMT) so that doesn't work as well.

What's the recommended way to reduce the wages shown on W2 in this case. Should I manually adjust my Taxable Income and attach an explanation statement?

Re: How to show the apportioned overseas RSU income on W2

DaveF1006 — Mon, 03 Mar 2025 20:52:37 GMT

To clarify, did you work for the same employer in both countries?

Re: How to show the apportioned overseas RSU income on W2

nevink — Tue, 04 Mar 2025 07:48:43 GMT

Yes, I worked for the same employer in the UK and in the US. I moved countries while being employed by them

Re: How to show the apportioned overseas RSU income on W2

MarilynG1 — Mon, 10 Mar 2025 21:19:20 GMT

RSU shares are taxed when Vested. If you vested while in the US, the income was added to your W-2.

If you then sold shares, take the amount added to your W-2 and divide by number of shares vested, to determine the Cost Basis per share (which is added to the Vest Price per Share).

You wouldn't need to reduce the income shown in Box 1 of your W-2, if this applies.

Once you know your Cost Basis per share, you can enter your 1099-B as a regular stock sale, with the correct Cost Basis.

Here's more detailed info on RSU's and Taxes.

@nevink

Re: How to show the apportioned overseas RSU income on W2

benjamesbarker — Mon, 02 Mar 2026 22:42:35 GMT

Did you get a reply to this?

Re: How to show the apportioned overseas RSU income on W2

DaveF1006 — Tue, 03 Mar 2026 22:31:30 GMT

Here is how you should report this in TurboTax correctly so you won't get charged for the added income.

To remove the $500 from your taxable wages:
Go to Wages & Income > Less Common Income > Miscellaneous Income.
Select Other reportable income.
Enter a description like: "W-2 Adjustment - Foreign Source RSU (Rev. Proc. 2004-37)".
Enter the amount as a negative number (e.g., -500).
This pulls the $500 out of your Adjusted Gross Income (AGI) on Line 1 of your 1040.

Since you are adjusting a W-2, you must attach a statement to your return.

The name of the employer.
The total RSU grant amount.
The calculation of the US vs. UK work days during the vesting period.
Reference to Article 14 (Income from Employment) of the US-UK Tax Treaty.

TurboTax does not support the filing of attachments. After completion, you will need to print and mail your return in accordance with the mailing and filing instructions TurboTax provides.