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Level 3
April 23, 2021
Question

How do I enter restricted Stock Units?

  • April 23, 2021
  • 3 replies
  • 25 views
A bit confused.  Employee had shares vested.  Zero Basis.  Morgan Stanley shows the taxable compensation, deduction for release costs, as well as taxes paid (including SE tax).  I don't see anything on the W2 that would indicate this. Where would you enter that information?
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3 replies

sjrcpa
Level 15
April 23, 2021

Should be noted in Box 12 or 14.

Have client get pay stubs for the period(s) when this occurred.

And if all they did was get the shares, there's probably nothing to report.

The more I know the more I don’t know.
rbynaker
Level 13
April 23, 2021

Restricted stock doesn't get any special W-2 reporting.  I always get the "final" paystub for the year which should show the YTD RSU vesting income included as ordinary income.  Then I tie it back to each vested lot in a spreadsheet.  Some of the vested shares may have been withheld to cover the taxes, depends on how the employer handles it so be sure to track the number of shares through the process.

Rick

SurfgolfAuthor
Level 3
April 23, 2021

Great answer. I have followed your advise and I have the information. Thank you Rick.  Now, my (hopefully) last question is where do I enter it in the program? 

Level 2
April 7, 2023

I have the same questions. Could you resolve it? I have a client with vested RSUs and E-trade supplemetal infomation with withholding taxes not showing on W2. where should I input those witholdings? 

itonewbie
Level 15
April 8, 2023

You'd enter the bargain element already taxed as your client's income as cost basis in the exact same screen you enter the sale.

I'm confused though... "Morgan Stanley shows the taxable compensation... as well as taxes paid (including SE tax). I don't see anything on the W2...

So, is your client an employee or independent contractor?

Is the bargain element showing as taxable compensation or not?

Ask for documents for the grant and vesting as well as the payslips.  The information has to be there.

[Edit: Forget about the part about Sch D.  Thought the OP asked about sale of stocks received from RSU.]

---------------------------------------------------------------------------------Still an AllStar