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D
Dolo2
March 23, 2025
Question

restricted stock vesting income

  • March 23, 2025
  • 1 reply
  • 0 views

Is the income from restricted stock vesting reported on form 1099-NEC subject to self employment tax?

 

    1 reply

    D
    DianeW777
    April 2, 2025

    Yes. Restricted Stock Unit (RSU) income reported on a W-2 for an employee is subject to payroll (FICA) taxes, RSU income for a contractor, reported on form 1099-NEC is subject to self-employment tax. Additionally, when they are reported, the value assigned becomes the cost basis in the stock when they are sold.

    If you are an employee of the company who issued a 1099-NEC in addition to your W-2, then they did not report it correctly, if you were still employed when the RSUs vested.

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