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Estimate vest tax

Does RSU tax at vest mean I pay again when I sell?

Vest income and later sales can both show up on tax forms. that is not always double tax on the same dollars.

You sold RSU shares and tax software says you owe a huge capital gain, even though you already paid tax when the shares vested. This page walks through why W-2 wages and a 1099-B sale both show up without taxing the same dollars twice.

Start here

Usually no, not on the same dollars. Tax at is wage income on the value when shares . When you sell, you are taxed on the change in price after that, not on the full sale amount again. It can look like double tax because both events show up on different forms.

What you need before using this

  • for the year the shares vested.
  • for the sale (proceeds and reported basis).
  • confirmation with per share on the .
  • Rough idea of sale price and date.

Walkthrough for typical public-company RSUs. Grant types, broker reporting, and state rules vary.

Why this happens

At , the full market value is typically wage income reported on your .

Your for the shares is generally the same value, the amount already taxed as wages.

When you sell, taxable gain is proceeds minus basis, not the full proceeds.

Brokers often report $0 basis on sales, so software imports a fake huge gain unless you adjust.

What to check

  • Whether wages appear in Box 1 for the year.
  • proceeds vs. reported basis (often $0).
  • per share × shares sold = proposed basis.
  • Gain after basis adjustment vs. price change since .
  • Whether tax software imported the without an adjustment.

Accepting $0 basis because the form says so

That overstates and feels like double taxation. The fix is usually a basis adjustment tied to income on your , not deleting the or re-entering the as income a second time.

What to check in your documents

  • Box 1 and any /stock plan line items for the year.
  • Box 1d proceeds and Box 1e .
  • confirmation: date, shares, used by payroll.
  • Broker supplemental lot report if available.
  • Trade confirmation showing sale price and fees.

Example scenario (hypothetical)

Illustration only, not your tax situation.

Jordan vests 200 shares at $40 ($8,000 on the ). Jordan sells all 200 later at $42. Correct economics: $8,000 was taxed as wages; the sale adds about $400 of . If the shows $8,400 proceeds and $0 basis, tax software might compute an $8,400 gain unless Jordan adjusts basis to $8,000.

Questions people ask

Why does TurboTax say I have a big gain if I already paid tax?
The software often imports basis as $0. The wages on your are separate. You generally need to tell the software the correct basis from your records so the sale only taxes the price change after .
Do I report the vest again when I sell?
No. The income belongs on the for the year. The sale goes on Form 8949/Schedule D with basis equal to for most standard .
What if I sold at a loss after vest?
You still report the sale. If price fell below , you may have a capital loss on the difference, while the wage tax at already happened. The loss does not undo income.
Is this different for ESPP shares?
Yes. has discount and qualifying disposition rules. This page focuses on standard -and-sell mechanics.

When to get help from a tax pro

  • and adjusted still do not reconcile.
  • You sold lots from multiple vests on one broker line.
  • You received a CP2000 notice about unreported income.
  • You have and sales mixed on the same account.

Related calculators

Related pages

Sources and notes

Vest FMV as wage income vs broker-reported proceeds on 1099-B when basis is missing.

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.