How do I report a RSU sale on my taxes?
If the RSUs fall into the first or second option, you'll receive a Form 1099-B reporting the total sales proceeds for the number of shares sold. (You may receive a 1099-B for option 3 if you sold any of the shares during the current tax year.)
How do I report restricted stock sales?
When you receive an RSU, you don't have any immediate tax liability. You only have to pay taxes when your RSU vests and you receive an actual payout of stock shares. At that point, you have to report income based on the fair market value of the stock.
How are restricted stock units reported on W-2?
RSU income is reported in Box 14 “Other” on your W-2. It will likely list the total dollar amount followed by the acronym “RSU.” Any sell-to-cover withholdings will be combined with your regular withholdings in boxes 2, 4, and 6.
How do I report a RSU sale on Turbotax?
0:011:01How Do I Enter Restricted Stock Unit (RSU) Sales in TurboTax? - YouTubeYouTubeStart of suggested clipEnd of suggested clipIf you sell your shares you'll get a 1099-b that reports any gains or losses. With your return openMoreIf you sell your shares you'll get a 1099-b that reports any gains or losses. With your return open search for 1099-b. And select the jump 2 link have your 1099-b.
Why are RSUs taxed twice?
The value of your shares when you sell them is $12,000, and since you have a cost basis of $10,000, your gain is $2,000. You then owe tax on the $2,000 gain in addition to the tax on the ordinary income from receiving the RSU shares when they vested.
Are restricted stock units taxable?
Taxation. With RSUs, you are taxed when the shares are delivered, which is almost always at vesting. Your taxable income is the market value of the shares at vesting. You have compensation income subject to federal and employment tax (Social Security and Medicare) and any state and local tax.
Do you pay capital gains on restricted stock units?
You will also pay capital gains tax when you sell your RSU shares. After vesting, your RSU shares become yours. If you decide to sell your RSU shares, and the selling price is higher than the fair market value of your stocks, you will be liable for capital gains tax.
How do I declare RSU ITR?
One needs to declare shares received as RSU as Capital Asset in Schedule FA(Foreign Assets) of ITR2, ITR3, ITR4.ITR1 does NOT have the schedule for Foreign Assets. ... You should fill in information about all the RSUs you have as of 31 Mar of the financial year and the income you derived from it(Dividend, Capital Gains).More items...•
What category is RSU in Box 14 of W-2 TurboTax?
informationalWhat do I choose as the category when the description is for RSU? RSU amounts reported in Box 14 of Form W-2 are informational.