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RSU exercised and sold. No W-2 as taxpayer is no longer in the US. Estimates paid

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Level 4

This is the 1st time I have come across this.  Tried searching the IRS website and either I am an idiot or am just confused  (or both).  Client moved back to Australia during 2018.  She is not a US Citizen.  she needs to file in the US as she exercised and then sold some RSU from her last US job  (she does still work for the same company, but in Australia).  She had told me about this in 2018, so I did file Form 8833 - Treaty-Based Return Position Disclosure and Form 8854 Initial and Annual Expatriation Statement.   I will be filing them this year as well as she does still need it as the Annual Expatriation statement.  Whereas last year was the Initial year.

Normally, taxes are withheld and included on someone's W-2 for RSU.  The company did withhold taxes and send them in as estimated payments.  For the life of me, I can't think of where to report this income on Form 1040.  The stock sales, that I know I would report the normal way.  but the exercise of the RSU, as I said, it is normally included as part of the W-2.  No W-2 issued in this case

She wasn't in the US at all during 2019.  Moved back to Australia in October 2018.  Thanks in advance for any help

 

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9 Replies 9
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Level 10

Seems like an odd situation.  I'll page our resident expert @itonewbie 

The RSUs I've seen aren't exercised, they just vest.

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Level 4

Thanks for tagging the person.  If you're saying it is odd, then I don't feel as clueless as I did.

 

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Level 12

Are you sure these were not already fully vested and also already taxed? It seems strange to give rights not vested to someone also no longer an employee.

I see this article:

https://www.investopedia.com/articles/tax/09/restricted-stock-tax.asp

And this one:

https://www.taxact.com/support/1035/2019/restricted-stock-units-rsus-and-backup-withholding

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Level 15

She is still an employee according to OP. Just not one in the US so no W-2.


ex-AllStar
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Level 4

Moved back home to Australia.  Works for the same company that she did for in the US. 

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Level 15

I'd report it as wages, with no W-2. If Jensen says different then listen to him.


ex-AllStar
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Level 4

That thought crossed my mind.  But, I wasn't sure if it made sense.  Thanks for the info

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Level 11

Does she still have a US resident visa (green card) ?

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Level 4

No, she gave it back when she left in October 2018. I recorded that on Form 8854 on the 2018 return

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