turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Restricted Stock Unit (RSUs) Distributions - W2 or 1099-B?

My wife had RSUs vest with her employer in 2022. It appears these were reported on her W-2 in box 12 code V (income from stock options). I assume the taxes withheld would also be reported on the W-2 and we shouldn't expect a separate 1099-B from the broker?

 

I know taxes were withheld from the distribution, but I want to be sure those are included on the W-2. Thanks.

 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
GeorgeM777
Expert Alumni

Restricted Stock Unit (RSUs) Distributions - W2 or 1099-B?

Yes, your spouse's employer was obligated to withhold taxes when the RSUs vested.  That withholding will likely be combined with the other withholding amounts on your wife's W-2.  In order to make the requisite withholding, a company will typically sell some of the shares an employee received--referred to as a "sell to cover"--and remit the proceeds to the appropriate taxing authority.  

 

As a clue to determining whether RSUs were sold in a sell to cover situation, you might look at the amount remaining in your wife's account.  If it's something less than a whole number, then it's likely some shares were sold to cover the tax withholding.  For example, if your wife was awarded 100 shares, but only 89 remain in the account, then the missing 11 shares were likely sold to pay taxes.  

 

Did your wife sell any of the RSUs that vested?  If so, your wife will receive a 1099-B from the broker that effected the sale.  Make sure the basis as reported on the 1099-B is correct.  Sometimes a broker will not know the basis and therefore, will include zero as the basis.  However, your wife's basis in the RSUs is the value of the RSUs on the day they vested.  If you need to make an adjustment in your wife's basis, you can do that in TurboTax in the section where you enter the RSU information.  

 

@Michael16

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

2 Replies
GeorgeM777
Expert Alumni

Restricted Stock Unit (RSUs) Distributions - W2 or 1099-B?

Yes, your spouse's employer was obligated to withhold taxes when the RSUs vested.  That withholding will likely be combined with the other withholding amounts on your wife's W-2.  In order to make the requisite withholding, a company will typically sell some of the shares an employee received--referred to as a "sell to cover"--and remit the proceeds to the appropriate taxing authority.  

 

As a clue to determining whether RSUs were sold in a sell to cover situation, you might look at the amount remaining in your wife's account.  If it's something less than a whole number, then it's likely some shares were sold to cover the tax withholding.  For example, if your wife was awarded 100 shares, but only 89 remain in the account, then the missing 11 shares were likely sold to pay taxes.  

 

Did your wife sell any of the RSUs that vested?  If so, your wife will receive a 1099-B from the broker that effected the sale.  Make sure the basis as reported on the 1099-B is correct.  Sometimes a broker will not know the basis and therefore, will include zero as the basis.  However, your wife's basis in the RSUs is the value of the RSUs on the day they vested.  If you need to make an adjustment in your wife's basis, you can do that in TurboTax in the section where you enter the RSU information.  

 

@Michael16

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
TomD8
Level 15

Restricted Stock Unit (RSUs) Distributions - W2 or 1099-B?

 "I assume the taxes withheld would also be reported on the W-2 and we shouldn't expect a separate 1099-B from the broker?"

 

If the employer sold some of your shares to cover the tax withholding, normally you'll receive a 1099-B.  The withheld tax amount will be reflected on the W-2.

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question