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My total wages which includes RSUs. When I received RSUs my company sold stock to cover taxes. Is that included in Box 2 of my W2 is the 'Federal Income Tax Withheld'.

whenever I received RSUs my company sold a part of it to pay for taxes. I know Box 1 has the value of RSUs I received added but does Box 2 'Federal Income tax withheld' have the value of the stocks that was sold to cover my taxes when I received the RSUs?
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3 Replies
HelenC12
Expert Alumni

My total wages which includes RSUs. When I received RSUs my company sold stock to cover taxes. Is that included in Box 2 of my W2 is the 'Federal Income Tax Withheld'.

Yes, generally your company would have calculated income taxes on the amount in your W-2, Box 1 so a portion of your W2, Box 2 Federal Income Tax withheld should include the income taxes on your RSU's. However, how much was withheld depends on your W-4 form. 

 

Note: Since the gain on that stock sale was included as income on your W-2, to avoid double taxation:

  • 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.

 

 

 

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My total wages which includes RSUs. When I received RSUs my company sold stock to cover taxes. Is that included in Box 2 of my W2 is the 'Federal Income Tax Withheld'.

in the Box 2 of W2 they report the tax withdrawn for RSUs also right but also your company withdraws a part of the salary for taxes. Do you know where can I get the break down of in the Box 2 how much is RSUs sold vs how much is actual money taken out from each paycheck?

GeorgeM777
Expert Alumni

My total wages which includes RSUs. When I received RSUs my company sold stock to cover taxes. Is that included in Box 2 of my W2 is the 'Federal Income Tax Withheld'.

Review your 1099-B or similar document to see what your company sold to cover taxes when the RSUs vested with you.  The proceeds from the "sold to cover" shares represent the amount the company withheld.  Therefore, you can compare that amount with the amount in Box 2 of your W-2.  

 

@salilsurendran

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