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RSU taxes for public company employees

Public company RSUs follow a familiar W-2 plus 1099-B pattern. master basis adjustments early.

Rates and rules change. Check the tax year and last-reviewed date on each page, then confirm against IRS or state guidance before you file.

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At a public company, follow a predictable rhythm: wages at on your , then a when you sell. The skill worth building early is fixing , because brokers often report $0 and make your sale look like a much bigger gain than it was.

Why this happens

Public-company on a set schedule, and the value is reported as wages.

When you sell, the broker reports the sale on a , frequently with missing basis.

Your basis is generally the value already taxed as wages, so a basis adjustment is usually needed.

Predictable cadence makes planning easier than at a startup, but the basis issue is constant.

What to check

  • Your schedule and the value reported as wages.
  • Each sale's reported basis vs: your records.
  • Whether or holding fits your situation.
  • Which forms arrive in January and February.
  • Your concentration in company stock.

Common mistake

Filing from the without adjusting basis. A $0 basis overstates your gain, this is where public-company employees most often think they were taxed twice.

Example scenario (hypothetical)

Illustration only, not your tax situation.

Example: an employee sells vested shares for $9,000. The shows $0 basis, implying a $9,000 gain, but the shares vested at $8,800. Adjusting basis leaves about $200 of gain, the real result.

When to get help from a tax pro

  • Your and do not reconcile after adjusting basis.
  • You sold across many lots.
  • You have a large concentrated position.
  • You moved states during the year.

Related calculators

Related pages

For learning, not filing

Grants, employers, and states all differ. Use your own documents and a qualified tax professional before you make decisions from this guide.