I received a 2021 W2 from a company that I left in 2020.

[Beginner]

I wonder why I received a 2021 W2 from a company that I left in 2020.

I left the company in Jan 2020, and received a 2020 W2 in 2021, which is normal.

But this year (2022) again, I received a 2021 W2 (with some amount in box1) even though I didn't work for the company during 2021.

I sold all my RSUs and stocks of that company in 2021, but is that the reason that I have to receive W2 from that company? My RSUs I received from that company were vested in 2019. I think the taxes for any capital gain from those stocks are to be paid based on E-TRADE TAX documents. Why is my old company sending me W2? Should Include it in my 2021 tax return calculation?

Do you have any advice?

[VolvoGirl]

Call and ask them.  You probably need to enter it.

[Beginner]

They said they don’t know and suggested me ask a CPA. They only confirmed it’s about my RSUs that I sold in 2021. Why did they interfere with it? The stocks were already vested in 2019 and they were all mine, and any gain after then is supposed to be reported through 1099 I will receive from Etrade. If that is the case, even if you sell stocks 20 years after quitting, still the company tracks you and issue you a W2 for all the gain? It sounds strange.

[DawnC]

It is normal to receive the W-2 if you sold RSUs in 2021.   You should enter the W-2 and once you receive the 1099-B from E-trade, you will enter that as Employer Stock sales in the Investment Income section.   

Since stock you receive through stock grants and RSUs is essentially compensation, you'll usually see it reported automatically on your W-2. Typically, taxes are withheld to go against what you might owe when you do your taxes. As with all withholding, the taxes your employer deducts from your paycheck may not be enough to cover the full amount of tax you owe when you file your return.

For more info, see How to Report RSUs or Stock Grants on Your Tax Return