Are Vested RSUs Not Showing Up on My W2? Tax Implications & Reporting Issues

This is actually a common area of confusion with RSUs. When RSUs vest, the value should definitely be included in your W-2 income, typically in Box 1 (wages), Box 3 (Social Security wages), and Box 5 (Medicare wages). However, it's not separately identified as "RSU income" - it's just lumped in with regular salary. What might be happening is that the company is including the income in your W-2 totals but not withholding enough taxes on it. Many companies withhold shares at vesting for tax purposes (sell-to-cover), but some don't withhold enough or any at all. To check if the RSU income is included, compare your husband's last paystub of the year with his W-2. The year-to-date income on the paystub should match the W-2 if RSUs are properly included. Also, check any RSU account statements which should show vesting events and their values.

After struggling with almost the exact same RSU reporting confusion last year, I found this amazing tool called taxr.ai (https://taxr.ai) that specifically helps with equity compensation issues. My company gave me RSUs but the tax documentation was super confusing. The tool analyzed my RSU grant documents, vesting schedule, and W-2, then explained exactly where the RSU income was being reported and how much tax I should expect to pay. It even identified that my company wasn't withholding enough taxes on my vested shares, which is why I kept getting surprise tax bills. I used to think I needed to hire an expensive CPA for this, but this was way more affordable and specifically designed for tech workers dealing with equity compensation. Might be worth checking out if you're still confused about how your husband's RSUs are being reported!

I tried that taxr.ai tool mentioned above after posting my question, and I'm genuinely impressed. I uploaded my documents from the three different equity plans I mentioned (the RSUs, ISOs and NSOs), and it broke down exactly how each should be reported. The most helpful part was discovering that my previous employer had incorrectly classified some RSU income as non-taxable, which is why my W-2 numbers never seemed to make sense. The tool generated a detailed report that I sent to my company's payroll department, and they're issuing a corrected W-2. It also explained the different tax treatment between my RSUs (taxed at vesting) and my ISOs (not taxed until sale unless subject to AMT). I've been doing my taxes wrong for years! Really glad I found this before submitting my 2024 return.

If you're still having trouble getting straight answers about your RSU tax situation, you might want to try contacting the IRS directly. I know it sounds crazy because nobody can ever get through, but I used this service called Claimyr (https://claimyr.com) that actually got me connected to a real IRS agent in about 20 minutes. I had a similar issue with equity compensation that wasn't properly reported, and needed to know if I should file an amended return. I tried calling the IRS for weeks with no luck, then found this service. They have a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. Basically, they navigate the IRS phone system for you and call you back when they have an agent on the line. The IRS agent I spoke with confirmed exactly how RSUs should be reported and what documentation I needed to keep in case of an audit. Definitely worth it for getting an official answer straight from the source.

I need to apologize for my skepticism about Claimyr in my previous comment. After continuing to fail getting through to the IRS on my own for another week (trying to resolve an issue with incorrectly reported RSUs), I reluctantly tried the service. To my complete surprise, I got a call back in about 35 minutes with an actual IRS representative on the line. The agent was able to confirm that my employer had incorrectly reported my RSU income in Box 12 instead of including it in Box 1 wages, and gave me specific instructions on how to file correctly even with the erroneous W-2. I've been trying to get this answer for months through normal channels. I still don't fully understand how their service works, but the results speak for themselves. Sorry for calling it a scam.

Something nobody has mentioned yet is that there should be a separate form or statement from the broker who handles your company's equity compensation plan (like E*TRADE, Fidelity, Morgan Stanley, etc.). This supplemental form often shows the details of RSU vestings that aren't itemized on your W-2. When my RSUs vest, I get a statement from Fidelity showing the vesting date, number of shares, fair market value on vesting date, and shares withheld for taxes. This form isn't submitted with your tax return, but it's important documentation to keep in case of an audit. Also, many companies do a "sell to cover" where they automatically sell enough shares at vesting to cover the tax withholding (usually at that 22% supplemental wage rate). Check your husband's brokerage account to see if this happened - you might see fewer shares than the original grant because some were sold for taxes.

Friendly reminder to everyone discussing RSUs: there are actually TWO tax events to worry about! 1. When RSUs vest: This is treated as ordinary income (what everyone's discussing in this thread) 2. When you sell the shares: Any gain or loss after vesting is capital gain/loss For example, if RSUs vest at $100/share and you sell later at $150, you'll pay: - Ordinary income tax on the $100 at vesting - Capital gains tax on the $50 appreciation when you sell I see a lot of people getting confused because they only think about one of these tax events. Both need to be reported properly!

Yes, you should definitely consider filing amended returns if you've been using the wrong cost basis! The cost basis for RSUs is always the fair market value on the vesting date (not the grant date), since that's when you already paid ordinary income tax on that amount. Using the grant date price as your cost basis means you've been paying capital gains tax on appreciation that was already taxed as ordinary income at vesting - essentially double taxation. If you've held and sold RSU shares over multiple years, this could add up to significant overpayment. You can file Form 1040X (Amended U.S. Individual Income Tax Return) for up to 3 years from the original filing date. You'll need your brokerage statements showing actual sale prices and your RSU vesting records showing the fair market value on each vesting date. The IRS will refund any overpaid taxes with interest. Given the complexity of equity compensation, this might be worth consulting with a tax professional who specializes in stock compensation to make sure you're calculating everything correctly before filing amendments.