W2 with RESTK

Forum|Forum|2 years ago
April 9, 2024
2 replies
20 views

I have a customer with a nice sized W2 with RESTK included $151,112.70. The amount is included in box 1 of W2 and taxes paid at 22%. Of course his gross W2 is $649,938.76. Am I suppose to enter the RESTK $151,112.70 else where on the return?

Be nice..............

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

soooo, whats RESTK? Included where on the W2?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

J

judys3Author

Level 6

The stock is included in box 1 of W2 as well as box 14 other

rbynaker

Level 13

When it vests it shows up in the W-2. When it's sold it shows up on Sch D/8949. Ask if anything was sold (or maybe you already have that on a broker 1099-B somewhere?)

Rick

J

judys3Author

Level 6

I'm asking for 1099-B. I have one account but am missing another.

So when it is vested to them on W2 they pay taxes and when they sell the stock they pay taxes again as capital gain?

qbteachmt

Level 15

"So when it is vested to them on W2 they pay taxes"

Yes, because it's a form of compensation for working there. It's a taxable benefit. Depending on the type of restrictions and the plan, it might be taxable when vested or only when distributed (made available).

"and when they sell the stock they pay taxes again as capital gain?"

The issuing is like the purchase or basis event. There are sometimes fractional sales to cover the extra taxes due at the time of vesting or issuing. Your taxpayer seems to made enough to cover the extra taxes from regular earnings. There might not be a 1099-B; that's a broker form. There might be internal sales, such as an ESOP handles the trades. There will be a statement, then.

Box 14 is an informational box; there is no one standard for its use.

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