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At vesting, RSU income is reported on your W2, and any taxes withheld are included as well. RSUs are like options with a $0 strike price. So, a RSU share is always at least as valuable as one stock option. However, because of this, companies typically grant more shares of options than RSUs.
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.
Locate Supplemental Tax Documentation Don't rely only on the 1099-B form. Instead, supply proof of the true cost basis of the restricted stock unit so you only pay taxes on what you owe. Some documentation may include the following: Records from your company supporting the vesting date and number of shares.
Income in the form of RSUs will typically be listed on the taxpayer's W-2 in the ?Other? category (Box 14). Taxpayers will simply translate the figure listed in Box 14 to their federal tax return and, if applicable, state tax return(s).
If you have RSUs the amount should be shown in box 14 of your W-2 copy. This amount should also be included in the wages (box 1) of your W-2. Box 14 is used by employers to list various items and there is not a standard list of codes, you can use the options for "Other Not Listed Here" in place of RSU Gain.