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I have some RSUs in 2021 and some of them got vested. I see that in my H&R Block software it states that these were reported on my W2 and I think they were. So my question is how is this vesting affecting my tax return? So if they are reported on the W2, that means that these are taxable income I made in 2021, even if I did not sell them? And how was the RSU income calculated exactly?

Say I got 100 shares of RSUs vested and released in 2021. And on my W2 it was reported as $20000 income. Does that mean the stock price for these were $200 when they got vested? How was this decided? And if I hold on to the stocks and sell them in the future, say in 2031 I sell them for $300 per share, I need to pay tax on ($300-$200)x100=$10000 as capital gain? Will ETrade keep track of the price when they were vested?

Cloudy
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fhcat
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1 Answers1

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So if they are reported on the W2, that means that these are taxable income I made in 2021, even if I did not sell them?

That's right. It's considered as salary and is treated as such for taxes, except the withholding are based on different rules. That may lead to some under-withholding and extra tax to pay at tax time (See Supplemental Wages chapter in Circular E).

And how was the RSU income calculated exactly?

Value of the vested share at the time of vest.

Say I got 100 shares of RSUs vested and released in 2021. And on my W2 it was reported as $20000 income. Does that mean the stock price for these were $200 when they got vested?

Yes.

How was this decided?

If it's a publicly traded company then check the stock market. For private companies - check with the company on the valuation.

And if I hold on to the stocks and sell them in the future, say in 2031 I sell them for $300 per share, I need to pay tax on ($300-$200)x100=$10000 as capital gain?

Yes.

Will ETrade keep track of the price when they were vested?

They should, confirm with them.

littleadv
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