Double taxation on vested RSUs

[ue1]

In 2021 I received (vested) RSUs from my employer and the broker sold some of them to pay the tax.

How can I check my tax return to verify I am not getting double taxed on these RSUs?

[ThomasM125 · Accepted solution]

The income when the shares became vested would be reported on your W-2 form as wages in box 1. You should see the amount listed in box 14 or 12.  Since you sold some shares, you would also have received and reported an investment sale form 1099-B.  You need to make sure that the cost basis of the shares sold included the income reported on your W-2.

Since you sold the shares within a short time from when they vested, your capital gain on the investment sale should be minimal. So, you can look on form 8949 where you will see the detail of the investment sale and see if there is a minimal gain reported there. If you haven't paid for your program yet, you won't be able to see form 8949, so you can go to the form 1099-B entry you made in TurboTax reporting the investment sale.

If not, you can go back and correct the investment sale in TurboTax. You will see an option to change the cost basis of your investment sold when you enter the form 1099-B in TurboTax. Often, you need to add the income reported on your W-2 form for the RSU's to the cost basis reported on the form 1099-B.