I have a 1099-B for the first time this year after selling stock that I received from my employer over the span of several years. It had a vesting period which had passed, but I don't understand if I should be marking the type as Restricted Stock Units or Restricted Stock Awards. Can you help me understand the difference between these and how to determine which one I have?
Both restricted stock awards (RSA) and restricted stock units (RSU) are grants of stock offered to employees. A restricted stock unit (RSU) is an award of shares of stock offered as compensation that comes with conditions (usually a vesting period) before they are transferred to the individual. There's not a tax liability when you receive the award, but there is when the RSU vests and you receive the stock shares.
A RSA is a type of compensation that grants the individual stock with restrictions. The award is generally issued to early employees of a company and gives them the right to purchase shares at FMV, at a discount or at no cost on the grant date. The individual owns the shares on the date they accept the grant and satisfies the requirements. RSAs are eligible for a 83 (b) election and are subject to tax at grant date.
For more information, refer to the TurboTax Help articles What's the difference between restricted stock and a restricted stock unit (RSU)? (in the article RSA is called restricted stock) and How to Report RSUs or Stock Grants on Your Tax Return.
Both restricted stock awards (RSA) and restricted stock units (RSU) are grants of stock offered to employees. A restricted stock unit (RSU) is an award of shares of stock offered as compensation that comes with conditions (usually a vesting period) before they are transferred to the individual. There's not a tax liability when you receive the award, but there is when the RSU vests and you receive the stock shares.
A RSA is a type of compensation that grants the individual stock with restrictions. The award is generally issued to early employees of a company and gives them the right to purchase shares at FMV, at a discount or at no cost on the grant date. The individual owns the shares on the date they accept the grant and satisfies the requirements. RSAs are eligible for a 83 (b) election and are subject to tax at grant date.
For more information, refer to the TurboTax Help articles What's the difference between restricted stock and a restricted stock unit (RSU)? (in the article RSA is called restricted stock) and How to Report RSUs or Stock Grants on Your Tax Return.