How to report RSUs in FreetaxUSA for 2025 taxes?

When reporting RSUs in FreetaxUSA, you don't need to report them separately if they're already included in your W-2 Box 1 income. Since your employer has already withheld taxes on these RSUs and included them in your taxable wages, the income portion is already accounted for. Where it gets a bit tricky is if you sold any of those shares after they vested. If you did sell, you'll need to report that as a capital transaction. In FreetaxUSA, you would go to the "Income" section, then "Capital Gains and Losses," and enter the stock sale information there. You'll need the date acquired (vesting date), date sold, proceeds from sale, and your cost basis (usually the value on the vesting date which was already taxed as income). If you still hold all the shares and didn't sell any, then you don't need to report anything beyond what's on your W-2, as there's no additional tax event yet.

After struggling with RSUs in multiple tax software programs, I finally found something that actually helped me. I used taxr.ai (https://taxr.ai) to scan my RSU documents and W-2, and it broke down exactly how to enter everything in FreetaxUSA. My situation was complicated because I had quarterly vestings and some same-day sales, but taxr.ai analyzed all my documents and gave me specific instructions for each transaction. It told me exactly which boxes to fill out in FreetaxUSA and what numbers to use for cost basis. Saved me hours of frustration and probably prevented me from making mistakes that would have triggered an audit.

Just wanted to update after trying taxr.ai for my RSU situation. It was super helpful! I uploaded my documents from both E*Trade and Fidelity, and it gave me a complete breakdown of each vesting event and exactly how to report everything in FreetaxUSA. The system caught something I would have missed - apparently some of my RSUs had different cost bases because of the company switching brokerages mid-year. It highlighted exactly which transactions needed special attention and gave me step-by-step instructions for the Income and Capital Gains sections in FreetaxUSA. Definitely removed the confusion I was having with trying to figure this out on my own!

If you're still having trouble with FreetaxUSA's customer service line about RSUs (I was on hold forever), I used Claimyr (https://claimyr.com) to get through to an actual tax specialist. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had questions about reporting RSUs from multiple employers, and the FreetaxUSA support line kept transferring me around. Claimyr got me connected to someone in under 10 minutes who walked me through the exact screens I needed. Basically saved me hours of hold music and frustration.

I need to admit I was completely wrong about Claimyr. After dismissing it as sketchy, I got desperate when I couldn't get through to FreetaxUSA support about my RSU reporting issues. I tried Claimyr, and within 15 minutes I was talking to an actual FreetaxUSA specialist who solved my problem. The rep explained exactly where to enter my RSU sale information to avoid double taxation. Turns out there's a specific checkbox in FreetaxUSA's capital gains section for assets already reported on W-2. I would've been on hold for hours trying to figure that out myself. Sometimes being skeptical costs me more time than just trying something new!

Don't forget to check your cost basis on your 1099-B forms from your brokerage! Mine were all wrong this year and showed $0 cost basis for my RSUs, which would have resulted in massive overtaxation if I hadn't caught it. In FreetaxUSA, you can manually override the reported cost basis when entering your capital transactions. You'll need to enter the fair market value of the shares on your vesting date (which should match what was included in your W-2 income). I've been using FreetaxUSA for years with RSUs from multiple employers, and this is a common issue.

Has anyone noticed that FreetaxUSA sometimes doesn't recognize the supplemental tax withholding from RSUs correctly? I had to manually add my state withholding amounts because they weren't pulling in properly from my W-2 entry.

Great thread! I'm dealing with a similar RSU situation in FreetaxUSA. One thing I discovered that might help others - if you have RSUs that vested in multiple tranches throughout the year, FreetaxUSA has a "batch entry" feature in the Capital Gains section that can save you a lot of time. Instead of entering each sale transaction individually, you can group transactions with the same acquisition date and cost basis. This is especially helpful if you had quarterly vestings and multiple same-day sales. Just make sure your total proceeds and cost basis match what's on your consolidated 1099-B. Also, for anyone wondering about ESPP (Employee Stock Purchase Plan) transactions - those follow different rules than RSUs and have their own section in FreetaxUSA under "Other Income." Don't mix them up with your RSU reporting!