Is RSU taxable?

[singh]

My client received  " Statement of Taxable Income" for 2022 from his employer, TESLA, Inc.

The statement shows a list of Transaction Date, Value Date, Value Basis, Sale price, Total value, Adjusted Sale Price and  Total W-2  Income ( $22,705.85) in the last column.

My confusion is whether this  Total W-2 Income ( $22,705.85) is already included in his W-2 or do I have to add this income. If I have to add this income where do I enter on Form 1040.

Do I have to calculate the gain or loss by considering value basis and sale price? The total value Basis is $3672 and the Sale Price is 1834.

Pardon me for this question as I have never handled this situation.

Client did not receive any other Forms.

Thank you in advance for your input.

[Just-Lisa-Now- · Accepted solution]

Should be included on his W2 already.   If they were sold, youd have a 1099B somewhere.

[rbynaker]

Have the client give you their year-end paystub.  It will show YTD earnings for various categories (such as RSU income).

In your case, I'd bet half of the RSU shares were withheld to cover the taxes withheld and the remainder were sold same day for a $2 loss (fee).  But that's pure speculation on my part. 🙂

As Lisa said, you're probably also looking for a 1099-B.  If not, I'd get a year-end broker statement from the client showing number of shares still held on 12/31.  Shares vested, they were either sold or they're still held somewhere.

Rick

[Skylane]

The employer generally handles and reports the exercise of employee options on both a w2 and 1099b as @Just-Lisa-Now- and @rbynaker indicated.

When the option is exercised the net income is grossed up into box 1 of the w2. There should be a corresponding entry in box 14. 

Since the sale of options (stock) shown on the 1099B is generally the same day as the purchase, the entries on schedule D will usually show sale and basis as the same (less any trading fees).

This assumes the stock was sold by the employee.

If stock was retained, there are some good worksheets in PS to track the basis. You’ll have to refer to the option paperwork provided by the employer.

Im sure of this for NQs. Pretty certain that RSUs work the same way.

[Skylane]

Edit additional remark deleted 

[singh]

Thank you so much for all your suggestions and help. Since my client says he has no other forms or information I am going to file his return without entering any infor. regarding this RSU.

Thank you.