Are RSUs double taxed?

Usually not on the same dollars. Vest value is wage income on your W-2. When you sell, tax applies to the price change after vest if basis is set correctly. It feels like double tax when 1099-B shows $0 basis and software taxes the full sale.

Why do RSUs show up on W-2 and 1099-B?

W-2 reports the vest as wages. 1099-B reports the brokerage sale. Both forms are expected when you sell shares you received from RSUs.

Why does TurboTax say I have a big gain if I already paid tax?

The software often imports 1099-B basis as $0. The vest wages on your W-2 are separate. You generally need to tell the software the correct basis from your vest records so the sale only taxes the price change after vest.

Do I report the vest again when I sell?

No. The vest income belongs on the W-2 for the vest year. The sale goes on Form 8949/Schedule D with basis equal to vest FMV for most standard RSUs.

What if I sold at a loss after vest?

You still report the sale. If price fell below vest FMV, you may have a capital loss on the difference, while the wage tax at vest already happened. The loss does not undo vest income.

Is this different for ESPP shares?

Yes. ESPP has discount and qualifying disposition rules. This page focuses on standard RSU vest-and-sell mechanics.

Are RSUs Taxed Twice? | Double Tax & 1099-B Fix

Q: Are RSUs taxed twice?

Same underlying rule as double taxation: vest wages and sale gain are separate events. If your search used this phrasing, the fix is still basis on Form 8949 — not deleting the 1099-B or re-entering vest income.

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.

In plain terms

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.

Gather before you start

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.

How the tax works

At , payroll reports the full market value as wages on your — that is the first tax event.

for the shares you keep is usually the same , so the IRS expects sale gain to exclude those dollars.

Brokers often leave basis blank on because payroll, not the brokerage, recorded the income.

Tax software imports without knowing your history unless you override basis manually.

What to check on your end

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 pull from your files

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

Are RSUs double taxed?: Usually not on the same dollars. value is wage income on your . When you sell, tax applies to the price change after if basis is set correctly. It feels like double tax when shows $0 basis and software taxes the full sale.
Are RSUs taxed twice?: Same underlying rule as double taxation: wages and sale gain are separate events. If your search used this phrasing, the fix is still basis on Form 8949 — not deleting the or re-entering income.
Why do RSUs show up on W-2 and 1099-B?: reports the as wages. reports the brokerage sale. Both forms are expected when you sell shares you received from .
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 .

When a CPA is worth it

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.

Sources and notes

Primary tax claims on this page are supported by the official and secondary sources below. Broker and software links describe reporting mechanics — confirm rules against IRS or state guidance.

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

IRS Publication 525 — Taxable and Nontaxable Income
Internal Revenue Service · Official
Covers compensation income from stock-based pay, including restricted property under section 83.
Filing taxes for restricted stock, RSUs, or performance awards (tax guide PDF)
Fidelity Stock Plan Services · Brokerage explainer
Explains W-2 vest income, 1099-B with $0 basis, supplemental adjusted cost basis, and Form 8949 reporting.
About Form 1099-B — Proceeds from Broker and Barter Exchange Transactions
Internal Revenue Service · Official
Broker reporting of sales proceeds and basis; basis on 1099-B may be incomplete for equity-compensation shares.

Related calculators

For learning, not filing

VestingTax.com is not a CPA firm or tax preparer. Grants, employers, and states all differ. Use the cited IRS and state sources above, your own documents, and a qualified tax professional before you make decisions from this guide.

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