topic Illinois Sale of Employer Securities in State tax filing

Illinois Sale of Employer Securities

JCQ4 — Sun, 13 Feb 2022 16:03:22 GMT

Hello. I sold RSUs in 2021, and reported Form 1099-B on my Federal.
1) Do I need to report RSU sales on IL tax return?

2) On IL, I looked into Sale of Employer Securities. Do I need to complete this for RSU? TurboTax says this is to report sale of securities from Pension, Profit Sharing, or Stock Bonus Plan..and not to report Stock Options from ESPP. Reading around, profit-sharing and stock bonus plan securities seem more for retirement, which RSUs are not. But RSUs are not really stock options either. So do I complete this section. If I do, it generates a Form IL-4644, which I can’t e-File. This Form also reads like it is for securities that are more for retirement.

here’s another post on this, that didn’t really answer the question completely.

https://ttlc.intuit.com/community/state-taxes/discussion/sale-of-employer-securities-in-turb[product key removed]n/00/1274929

Re: Illinois Sale of Employer Securities

Mike9241 — Sun, 13 Feb 2022 20:40:00 GMT

IL-4644

Do not use this form for the sale or exchange of securities received
as the result of the exercise of a stock option under an employee
stock purchase plan.

the sale of RSUs, since reported on 1099-B, should automatically flow to line 1 of the IL-1040 because that's Federal adjusted gross income which includes any taxable gain or loss on sale of the RSU's

Re: Illinois Sale of Employer Securities

Buddyrey1 — Mon, 11 Apr 2022 01:46:28 GMT

I also sold company shares that were received through a LTIP plan (which I believe is similar to the RSU mentioned in the original question). The State of IL is asking me to include the date of distribution for these securities, market value of stock on that date, and federal tax basis on that date. Since these shares vested on different dates, in different years, how would I represent that on the form. I included the Fed Tax gain that is included on my Federal return, but not sure how to handle the fields on the IL form since it seems to be asking for MV at time of distribution - not time of sale -- and again there were multiple distribution dates.