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Level 2
posted Feb 26, 2022 6:24:55 PM

Employee RSUs

Dear Sir/Ms.,

I received RSUs from my company and it went public -- so we converted the RSUs to shares in 2021. I had paid taxes when they RSUs vested on a regular basis. 

 

If we sold some of them, should we just take the difference of the "sale price" and the "vested price" as capital gains ? 

- do we need to file any specific forms ? e.g. somebody indicated that I may need to file IRS form 8949 

 

Appreciate your views. Thanks

AC

0 1 368
1 Replies
Expert Alumni
Feb 28, 2022 6:43:05 AM

TurboTax will generate Form 8949, Sales and other Dispositions of Capital Assets once you enter your 1099-B form. The gain on that stock sale was included as income on your W-2.  To avoid double taxation, here's the correct way to enter your RSU's:

  • You will need to change the stock basis on the date of the sale, to the price on the date of sale.  
  • The result is zero gain or a minor loss due to brokers commission/fees.  
  • The IRS will expect to see that information on your tax return.  

To enter your 1099-B form, see Where do I enter a 1099-B?

 

For additional information, see the TurboTax article: Non-Qualified Stock Options.