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February 16, 2023
Question

How do I enter my T5008 form on TurboTax? This is regarding RSU's I received from my company

  • February 16, 2023
  • 1 reply
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Sold RSU's in 2022 - not sure where I can use this form on TurboTax
Do we need to claim these sold RSU's on my tax return?

1 reply

February 16, 2023

Restricted Stock Units (RSU) typically result in taxable income when they vest, which is when you take possession of them, and also when you sell them. Often, they will vest and you will sell them immediately or in the same year, and I believe that is what you are referring to.

 

If so, the income from the vesting, which would be the difference between what you paid for them and their fair market value when they vested, would normally be reported to you on your W-2 form, in box 1. When you sell them, the gain on sale would be the sale price less their fair market value when you acquired them.

 

If your RSU's vested and you sold them in the same year, then you need to report ordinary income from the vesting (which should be on your W-2 form) and capital gain or loss on their sale. Since it appears you did not receive a form 1099-B reporting the sales, you can follow these instructions to report the sales in TurboTax:

 

  1. Choose the Federal option on your left menu bar
  2. Choose Wages & Income
  3. Choose the Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) option
  4. Choose the Stocks, Bonds, Mutual Funds option
  5. Indicate that you did not get a 1099-B form 
  6. Choose the I'll enter one sale at a time option
  7. Enter the sale proceeds and cost basis
  8. Choose the holding period (short term less than 1 year, long term 1 year or more)
  9. Indicate the stock was acquired through an employee stock plan
  10. Choose the Restricted stock units (RSU) option and work your way through the rest of the section

 

 

 

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