RSU Tax 😭

Amazon
anxiouslyy

Go to company page Amazon

anxiouslyy
Feb 26 24 Comments

Do I have to add the information of the supplemental tax form from fidelity on TurboTax? The RSU is already listed as other on W2 and if I add the proceed amount it shows the proceeds as capital gains and I owe like $5000 more because of it even though the RSU was already taxed at Vest. I also did not sell any RSU just sold for taxes and left in fidelity which I actually loss money on.

Does anyone understand how to report RSU?

TC 125πŸ₯²

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 TOP 24 Comments
  • Cisco / Eng
    happy.me

    Go to company page Cisco Eng

    BIO
    Hands on developer, hardworking, leader, influencer, extremely committed to work, like to learn new things, level head in times of pressure
     happy.me
    Don't they deduct RSU tax at vest time itself?
    Feb 26 4
    • Investment Bank
      Glinda

      Investment Bank

      PRE
      HP
       Glinda
      That is correct, Workday. If the vest pushes you into a higher bracket you will need to have more withheld or make a direct quarterly tax payment. After I get a bonus I do a tax estimate to make sure I have paid in enough not to be assessed an under-withholding penalty.
      Feb 26
    • Cisco / Eng
      happy.me

      Go to company page Cisco Eng

      BIO
      Hands on developer, hardworking, leader, influencer, extremely committed to work, like to learn new things, level head in times of pressure
       happy.me
      Every year I file through TurboTax and they make it scarily easy to enter RSU info. I never thought about all these. I hope they are doing all the tax adjustments and calculations for me in this matter.
      Feb 26
  • Qualcomm / Eng
    oRXf54

    Go to company page Qualcomm Eng

    PRE
    Viasat Inc.
     oRXf54
    Make sure you update the cost basis to be the adjusted basis from your form. It might be getting set to 0 by default which makes it look like you had way more capital gains than you actually did.
    Feb 26 4
  • Investment Bank
    Glinda

    Investment Bank

    PRE
    HP
     Glinda
    If you did not sell any shares then you owe no capital gains, only income tax on the vested RSUs (which is reported on your W2). The Supplemental form provided by Fidelity is for informational purposes only and is not reported to the IRS (which is stated on the form).

    Once you actually sell shares, the sale will be reported on a 1099-B and you will owe capital gains on the sales price less the cost basis.
    Feb 26 3
    • Investment Bank
      Glinda

      Investment Bank

      PRE
      HP
       Glinda
      The capital gains tax on shares sold, which may be zero if you sell to cover, will be reported by Fidelity and the income tax component will be on your Amazon W2.
      Mar 22
    • Amazon
      FooBarn

      Go to company page Amazon

      FooBarn
      What makes sense is that the vest amount shows up both in the Fidelity 1099-B and my W2.

      What doesn't make sense is that I did sell AMZN for some short term capital gains. However, in Fidelity, the capital gain isn't reported to the IRS.
      Mar 25
  • Amazon / Eng
    QueMasPues

    Go to company page Amazon Eng

     QueMasPues
    Why waste brain power thinking about bullshit capital gains, short-term, long-term, pay tax the quarter of sale vs. the year or sale, double taxed, sell for gain, sell for loss, etc.
    Feb 26 3
  • I have the same confusion with fidelity. The cost basis shows as 0. I sold immediately after vest.. so capital gains is actually 0. And my w2 doesn’t distinguish rsu and base income.. where do you see it?
    Feb 26 1
    • Investment Bank
      Glinda

      Investment Bank

      PRE
      HP
       Glinda
      If you sold shares immediately after vesting you should have received a 1099-B from Fidelity. Your cost basis and sales price should be the same (or very close), so as you stated, you will not owe capital gains tax.

      For your W2, it does not matter if RSU income is listed separately or not as it is all taxed at an ordinary income tax rate (as opposed to the lower capital gains tax).
      Feb 26