Which W-2 box shows RSU income?

Box 1 (wages). Some employers note RSU amounts in Box 14 as information only. Withholding appears in Boxes 2 and 17; FICA in Boxes 3–6. There is no dedicated RSU box — the vest FMV is part of total wages.

Why is Box 3 lower than Box 1 after a big vest?

You may have reached the Social Security wage base from salary before the vest. Medicare wages in Box 5 often still include the full vest amount even when Box 3 stopped at the cap.

Do I report RSUs on W-2 again when I sell?

No. The vest belongs on the W-2 for the vest year. The sale belongs on Form 8949 / Schedule D from 1099-B with basis equal to vest FMV — not a second wage entry.

Two W-2s and RSU vests from both jobs — how does Box 1 work?

Each employer reports its own vest FMV on its W-2. Tax software adds all Box 1 wages on one Form 1040. See the two W-2s same-year guide if you changed jobs.

Pay stub gross vest does not match Box 1 — which wins?

Box 1 on the W-2 is what the IRS matches. Reconcile pay stubs and vest confirmations to Box 1 before filing; ask payroll for a corrected W-2 if FMV on the confirmation never made it into wages.

Are RSUs Included in W-2? | Vested RSU Wages

Your W-2 Box 1 jumped above salary and you need to know whether vested RSUs belong there, which boxes carry the dollars, and how to tie the total back to vest confirmations before you call payroll.

In plain terms

Yes — value is generally included in Box 1 wages for the year the shares , which is why wages can exceed your salary. Some employers add an breakdown in Box 14; practices vary. Vested belong on the ; they are not reported again as separate income when you sell if basis is correct.

Gather before you start

for the year.
confirmation(s) with and share count.
Pay stub from the pay period.
Equity portal year-end summary if provided.

How the tax works

income is compensation, so payroll treats it like salary and bonus in the year shares deliver. The on the is added to taxable wages on the paycheck and rolls into Box 1 for that calendar year — not into a separate equity-only IRS form.

Box 1 is the headline number most people compare to salary, but federal and FICA wage boxes can differ. Social Security wages in Box 3 stop growing after you hit the annual wage base; Medicare wages in Box 5 generally include the full . A late-year may show Medicare on the equity line but no Social Security if salary already consumed the cap.

appears in Boxes 2 (federal), 17 (state), and FICA boxes 4 and 6. Employers often use on the portion while salary follows your W-4 — so the rate on the stub is not proof Box 1 is wrong. sells shares to fund , but gross still hit Box 1 when shares were delivered.

Some employers note totals in Box 14 as a memo line; Box 14 is informational and does not change Box 1 math. State wage boxes mirror California, New York, or other payroll residence rules at — if you moved mid-year, one may split state wages across boxes 15–20.

When you later sell vested shares, the broker sends . That sale is not a second wage entry on the . Form 8949 and Schedule D report proceeds with basis equal to already in Box 1 — the and tell different parts of the same story.

What to check on your end

Box 1 total vs. salary plus known totals.
Box 14 or employer stock plan memo for dollar amounts.
State wage boxes if you moved mid-year.
Whether federal and state on the match your pay stub.
That on confirmations roughly equals the portion of wages.

Thinking W-2 wages are wrong because they beat your salary

A jump in Box 1 after vests is usually correct. The mistake is comparing wages to salary alone instead of salary plus income — or assuming the sale on must re-report the same dollars.

What to pull from your files

Box 1, 3, 5, and state wage boxes.
confirmation PDF with used by payroll.
Pay stub detail.
only if you also sold shares (separate from reporting).

Example scenario (hypothetical)

Illustration only, not your tax situation.

Example: Riley earns $140,000 salary and vests $35,000 of . Box 1 might show about $175,000. That includes vested — expected, not an employer mistake. When Riley sells later, the sale goes on with basis tied to the $35,000 already in wages.

Questions people ask

Which W-2 box shows RSU income?: Box 1 (wages). Some employers note amounts in Box 14 as information only. appears in Boxes 2 and 17; FICA in Boxes 3–6. There is no dedicated box — the is part of total wages.
Why is Box 3 lower than Box 1 after a big vest?: You may have reached the Social Security wage base from salary before the . Medicare wages in Box 5 often still include the full amount even when Box 3 stopped at the cap.
Do I report RSUs on W-2 again when I sell?: No. The belongs on the for the year. The sale belongs on Form 8949 / Schedule D from with basis equal to — not a second wage entry.
Two W-2s and RSU vests from both jobs — how does Box 1 work?: Each employer reports its own on its . Tax software adds all Box 1 wages on one Form 1040. See the two W-2s same-year guide if you changed jobs.
Pay stub gross vest does not match Box 1 — which wins?: Box 1 on the is what the IRS matches. Reconcile pay stubs and confirmations to Box 1 before filing; ask payroll for a corrected if on the confirmation never made it into wages.

When a CPA is worth it

Box 1 does not include income you know occurred.
You have two W-2s and wages look duplicated or missing.
State wages look wrong after a move.
You received a corrected after filing.

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.

RSU vest income reported as wages on Form W-2 Box 1.

IRS Publication 525 — Taxable and Nontaxable Income
Internal Revenue Service · Official
Covers compensation income from stock-based pay, including restricted property under section 83.
IRS — U.S. taxation of stock-based compensation (RSU vesting and W-2 reporting)
Internal Revenue Service · Official
Describes RSU income at vest, W-2 reporting in boxes 1/3/5, and ordinary income treatment.
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.

Related calculators

RSU Tax Calculator
Model federal and state taxes on your RSU vest, compare withholding to estimated tax, and see what you may keep.

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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Are vested RSUs included in W-2 wages?