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How do I report RSUs on my tax return?

Reporting RSUs means connecting W-2 wage income to brokerage 1099-B sales. this guide maps the flow.

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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Reporting means connecting two things: the income already in your wages, and any share sales reported on a . The income usually needs no extra entry beyond your , but sales generally go on Form 8949 and Schedule D, often with a cost-basis adjustment so you are not taxed twice.

Why this happens

income is compensation, so your employer reports it in wages. Entering your generally captures that part.

Selling the shares is a separate investment event, reported by your broker on .

Stock sales are typically reported on Form 8949 and summarized on Schedule D.

Because brokers often report $0 or missing basis, the sale entry frequently needs a basis adjustment back to the value.

What to check

  • That your wages include the income for the year.
  • Each sale, proceeds and reported basis.
  • Your records for the that should be your basis.
  • Whether your software carried a $0 basis into the gain calculation.
  • Whether any sales were short-term vs long-term based on holding period after .

Common mistake

Entering the income twice, once from the and again as if the sale were all . The was already in wages. The sale should mostly reflect price change after .

Example scenario (hypothetical)

Illustration only, not your tax situation.

Example: Dana's already includes $12,000 of income. Dana sold shares for $12,500. On Form 8949, Dana reports $12,500 proceeds and adjusts basis to the $12,000 value, leaving about $500 of gain, instead of letting a $0 basis create a $12,500 gain.

When to get help from a tax pro

  • Your wages and broker totals do not reconcile after adjusting basis.
  • You sold across many lots with different prices.
  • You had vests or sales in more than one state.
  • You received corrected forms after filing.

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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.