RSU taxation, reporting or Turbo Tax.

[carinj81]

Hello,

I received RSU through my employer, taxes have been automatically paid for the vested RSU and I received a form 1099B from my broker, however this year I have not sell any stock.

How do I report this information in TurboTax? If I follow the income section on turbotax on Investment income under the question Did you sell any investments in 2021, I answered no, but how do I report the sales from the 1099B made by my broker ?

Thank you!

[DianeW777 · Accepted solution]

You received the 1099-B because the company actually sold it for you so that the taxes could be paid.  When the shares are vested there is additional tax created by adding the value of vested shares to your income on your W-2. The taxes paid become part of your federal tax withholding.

The cost basis for the Restricted Share Units (RSUs) is the price the shares cost for normal market buyers the day they vested into your name.  This can be found on any number of web sites and most certainly from your financial office of your employer or Human Resources/Payroll. Once the shares vested your employer included an amount of income that was included in your W-2 for that year. This type of transaction requires a taxable income amount for you which in turn becomes your stock cost basis in your RSUs.

Check your W-2 income that was reported in the year your shares were vested.  This is the cost basis for the shares you received. Your employer can tell you the cost per share if there were different vesting dates. You may have to calculate that yourself once you have the numbers.

• What are RSUs and how do I report them?
• Where do I enter Form 1099-B?