What's the easiest way to calculate cost basis for non-covered securities from RSUs?

Thanks for explaining! I've been going through my paystubs but it's not super clear which amounts relate to the RSUs specifically. Would the RSU income just be included in my regular income on the paystub, or should there be a separate line item? Also, do you know if I need any specific documentation to prove the cost basis if I get audited?

RSU income is typically included in your regular income, but many companies will have a separate line item or section on your paystub that specifies "RSU income" or something similar. If you can't find it there, check if your company has an equity portal or platform (like E*TRADE, Fidelity, Morgan Stanley, etc.) where you manage your stock awards - these platforms often provide tax information documents. For documentation, keep copies of your vesting statements, any RSU award agreements, paystubs showing the RSU income, and brokerage statements showing when the shares were deposited and sold. These will clearly establish your cost basis if you're ever audited. Also, consider requesting an "RSU Tax Summary" from your HR or stock administration team - many companies provide these documents specifically for tax purposes.

Does it handle other equity compensation like stock options too? My company has a mix of RSUs and NSOs and I'm trying to figure out if it's worth it for my situation before tax season.

How does the document upload work? I'm always nervous about uploading financial documents to websites I'm not familiar with. Do you know anything about their security?

Yes, it handles all types of equity compensation including NSOs, ISOs, RSUs, and ESPP. It's especially helpful if you have a mix of different types since each has their own tax rules. For NSOs, it calculates the correct ordinary income component and separates it from the capital gains portion. For document uploading, they use bank-level encryption for all uploads and data storage. They're SOC 2 compliant (which is a security certification) and they don't store your documents long-term. You can also delete your data anytime after you're done. I was hesitant too, but their security page explains their protocols in detail. They also have a manual option where you can enter information yourself without uploading if you prefer.

Wait, how does that actually work? Why would the IRS call back some random service but not me directly when I call?

Sounds like a scam. No way the IRS is giving priority callback to some third party service. They can barely answer their own phones let alone set up special lines for companies.

It's not that they have a priority line or anything special. Claimyr uses an automated system to call the IRS and navigate through all the phone menus for you, then when they reach the point where you'd normally wait on hold, they request a callback (which is a standard IRS option). The callback goes to Claimyr's system, which then immediately connects to your phone. They basically just handle the waiting and menu navigation part. The IRS doesn't know or care that you're using a service - they're just calling back the number that requested it. I was skeptical too, but it legitimately works. You're still talking directly with actual IRS agents, Claimyr just handles the annoying waiting part. It's basically the same as if you had a friend call and wait on hold for you, except it's automated.

Do you know if those reports are automatically generated or do employees need to request them specifically? I've been at my company for 3 years and have never received anything like this.

It varies by company. At mine, employees need to request them specifically - they're not automatically distributed. Most people don't know to ask for them! Try contacting your stock administration team (not general HR) and ask for a "tax basis report" or "supplemental tax information for equity compensation." The team that handles your equity grants should know what you're talking about. If you use an equity management platform like E*TRADE, Schwab, or Fidelity for your company equity, you can sometimes download these reports directly from the platform. Look for sections labeled "Tax Documents" or "Tax Resources" within your equity account.

HUGE difference! If you don't report the correct cost basis on RSUs, you're essentially paying double tax. Example: Let's say you got $10,000 worth of RSUs that vested. You already paid income tax on that $10,000 (it's on your W-2). If you then report a $0 cost basis when you sell, you're paying capital gains tax on the ENTIRE $10,000 again! In my case, I had about $65,000 in RSUs last year. Using the correct cost basis vs. what was on my 1099-B saved me over $13,000 in taxes. Definitely worth figuring out!