AMT and Equity Compensation
Alternative minimum tax, nonqualified stock options, incentive stock options and other forms of equity compensation.
Basic RSU income on W2 and tax question
Posted by: krishk24, March 4, 2012 02:07AM
I had some RSU's vest in Nov 2011. Taxes were paid at the time of vesting in the form of vested shares (supplemental tax rate)

now the income at the date of vesting was calculated as FMV * number of shares vested.

That amount is reported in my W2

Now do i need to report anything on my 2011 taxes since i sold no vested shares ?

Re: Basic RSU income on W2 and tax question
Posted by: MadDog, March 4, 2012 12:49PM
I'm not sure I understand the question - is it whether the 2011 W-2 is correct? The answer to that question is, yes, the W-2 is correct. When the shares vest, section 83 subjects you to tax based on the excess of the FMV of the shares over any amount paid to acquire those shares. So if I infer that you paid zero, you have added compensation equal to the FMV of the shares at the date they vest. The only exception would be if you had earlier created a taxable event by making a section 83(b) election within 30 days of receipt of non-vested shares.

Re: Basic RSU income on W2 and tax question
Posted by: krishk24, March 4, 2012 05:05PM
MadDog- as I said it is a basic question as this is the first time I have RSUs. Once the RSU vests, it adds in the form of ordinary income to be taxed at my marginal tax rate and taxes were paid at supplemental tax rate. my question - do i need to bother about reporting anything else about RSU (other than W2) in my 2011 return ? yes or no ?

Re: Basic RSU income on W2 and tax question
Posted by: Art, March 4, 2012 08:36PM
What MadDog said.



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