Question

First time with RSU's

Forum|Forum|3 years ago
February 6, 2023
1 reply
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Hello,

So I had two vestments of RSU's and sold them to cash out. When they came to me, my employer took taxes out on them. They amount I received and the taxes are part of my W2. I entered in all of this info for my taxes. At the end I clicked on the link to look at the break down of why I was having to pay so much. Ends up Turbotax added the income from my RSU to my w2 income, even though that income had already been accounted for. Is there something I am missing?

TurboTax Deluxe Online

G

GeorgeM777

You are correct, in that you only need to pay tax on any capital gain when you sold the RSUs. Assuming your company withheld enough taxes when the RSUs vested, you will not need to pay any additional tax on top of what has already been withheld.

Because it appears there has been a double counting, go back and check your W-2 information, if you have not already done so. Also, when you entered your cost basis information into TurboTax, what amount did you enter? Many times, if an RSU is sold through a brokerage firm, that firm will not know the cost basis and thus, will report the cost basis as zero. A zero-cost basis is not correct. Your cost basis is the value of the RSUs on the day they vested. Thus, check your cost basis information for the RSUs.

If you had a gain, then you will pay a capital gains tax on that gain. It will be a short-term gain, or a long-term gain based on your holding period. If you had a loss, that loss can offset any other capital gains, plus $3,000 of ordinary income ($1,500 of ordinary income if your filing status is Married Filing Separately).

@alchemydragon

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