How do I enter restricted Stock Units?

[Surfgolf]

A bit confused.  Employee had shares vested.  Zero Basis.  Morgan Stanley shows the taxable compensation, deduction for release costs, as well as taxes paid (including SE tax).  I don't see anything on the W2 that would indicate this. Where would you enter that information?

[sjrcpa]

Should be noted in Box 12 or 14.

Have client get pay stubs for the period(s) when this occurred.

And if all they did was get the shares, there's probably nothing to report.

[rbynaker]

Restricted stock doesn't get any special W-2 reporting.  I always get the "final" paystub for the year which should show the YTD RSU vesting income included as ordinary income.  Then I tie it back to each vested lot in a spreadsheet.  Some of the vested shares may have been withheld to cover the taxes, depends on how the employer handles it so be sure to track the number of shares through the process.

Rick

[Surfgolf]

Great answer. I have followed your advise and I have the information. Thank you Rick.  Now, my (hopefully) last question is where do I enter it in the program? 

[tgatax]

I have the clients vesting schedule that show shares withheld for taxes but the w2 does not reflect these taxes as being paid. Where do you enter them in Lacerte? And what confirmation should we have that the company actually remitted this tax payment on behalf of the client?

[George4Tacks]

@tgatax Do a bit more research and then post a new question in the Lacerte portion of this community. 

https://proconnect.intuit.com/community/lacerte-tax/discussion/03/302

[Phoebe07]

I have the same questions. Could you resolve it? I have a client with vested RSUs and E-trade supplemetal infomation with withholding taxes not showing on W2. where should I input those witholdings? 

[sjrcpa]

How do you know the withholding is not in the W-2?

Have you seen the pay stubs for the time period(s) this took place?

[qbteachmt]

Restricted Stock Units, Restricted Stock, and even Stock Options, all work differently. I recommend using google and search on:

investopedia rsu

and they even have articles for comparison, such as RSU vs Stock Option or RSU vs RS

The differences are from vesting (date of ownership or documenting basis) and also, notice when the vesting is different than the rights. That's because an employee might have been given the rights over years, the values might have been vesting over a different cycle (creating taxable events) and there might be sales crossing over those "lots" and even sales simply to cover the withholding requirements for the awarded basis that is taxable based on the type of option, award, or vesting. Until you find out the details you need, you won't know what you need to prepare that tax return and you won't know which W2 you use for reference.

[itonewbie]

You'd enter the bargain element already taxed as your client's income as cost basis in the exact same screen you enter the sale.

I'm confused though... "Morgan Stanley shows the taxable compensation... as well as taxes paid (including SE tax). I don't see anything on the W2...

So, is your client an employee or independent contractor?

Is the bargain element showing as taxable compensation or not?

Ask for documents for the grant and vesting as well as the payslips.  The information has to be there.

[Edit: Forget about the part about Sch D.  Thought the OP asked about sale of stocks received from RSU.]

[qbteachmt]

@Phoebe07 

Your own question topic is here:

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/how-do-i-input-withholdin...

Let's try to redirect folks to that newer topic, and not keep asking in other topics, as well; especially not updating these older topics. Things change as we move through the years. Plus, this topic is for using ProConnect. You seem to be using Lacerte.

Thanks.