Restricted stock units (RSU or RSUS) are stock-based compensation primarily used to reward employees. Reporting them on your taxes is important, so read on to learn more.
RSU Taxes
While there is no value to the employee when the RSU are issued, when the RSU is distributed, it’s another story. Once distributed, the recipient of the RSU is taxed on the value of the shares at the time of vesting. You will have the fair market value (FMV) of the RSUs included as taxable wages on your Form W-2.
What Form Should You Use to Report Stock Sales on Your Taxes
Your vested RSU shares will have the potential for gain or loss. At this point, your basis in the shares is equal to the FMV included in your taxable wages on vesting of the RSUs. The date acquired will be the date your RSUs vested. You will include the shares on your tax return in the year that you sell them. You will treat them like any other sale of stock.
Report sales of stock on Form 8949:
- Use Part I for stock owned for one year or less
- Use Part II for stock owned more than one year
Include these:
- Sale price
- Sale date
- Date acquired
- Original purchase price
After you list the transactions, total each column. Then, carry the totals to Schedule D. Follow the instructions for Schedule D.
More Help with RSUS Taxes
If you received employee compensation in the form of RSU and you need help reporting it on your taxes, we can help!
Whether youmake an appointmentwith one of our knowledgeable tax pros or choose one of ouronline tax filingproducts, you can count on H&R Block to help you get back the most money possible on your tax return
