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Andy3
New Member

FICA taxes on RSUs for Retirement-Eligible Employees

Hi, I received RSU grant from my employer. Because I was over 55 my employer collected FICA taxes upon the grant per IRS regulations even though the grant did not vest yet. My questions is, when the stock vests over the 3 future years and I will pay taxes when I receive the stock, how do I report that I already paid FICA taxes and not pay FICA taxes again? I did not get any forms from my work and TurboTax does not seem to have any options to report that, unless I missed it.

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1 Reply
KrisD15
Expert Alumni

FICA taxes on RSUs for Retirement-Eligible Employees

Because you were "retirement eligible" the FICA tax was collected and paid although the stock had not yet vested. 

If you look at the W-2 for that year, your FICA wages should include the not-yet vested stock. 

 

When the stock does vest, if you are no longer receiving a W-2, you will report that as "other Income" which is not subject to FICA tax. 

 

TurboTax never addresses the FICA on RSU because it is done through payroll. 

 

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