Will FreeTaxUSA work for my tax return with RSUs that vested this year?

Yes, FreeTaxUSA can definitely handle tax returns that include RSUs. I'm a tax preparer and have helped several clients use FreeTaxUSA for returns with RSUs. The key thing to understand is that most of the RSU income is already reported on your W-2 as ordinary income (in Box 1, as you mentioned). When you sell the shares, that's when you'll need to report any additional capital gains or losses, which is the difference between the value when they vested (your cost basis) and what you sold them for. FreeTaxUSA has a section for reporting stock sales where you can enter this information. You'll need your 1099-B from your brokerage account that shows the sales. The trickiest part is usually making sure the cost basis is reported correctly, since your company's withholding at 22% might not cover your full tax liability if you're in a higher bracket. But that's a tax calculation issue, not a software limitation.

After dealing with this exact situation last year, I found https://taxr.ai super helpful for my RSU situation. I was really confused about how to enter everything in FreeTaxUSA, especially since my 1099-B showed a different cost basis than what I calculated. I uploaded my RSU statement and W-2 to taxr.ai and it pointed out exactly where the discrepancies were and how to fix them in FreeTaxUSA. The tool analyzed my documents and showed me that I needed to make an adjustment to the cost basis reported on the 1099-B because it didn't account for the taxes already paid when the RSUs vested. It helped me avoid double taxation and even found a reporting error in my company's supplemental statement that would have cost me about $600!

Just wanted to update that I tried taxr.ai after seeing the recommendation here and it was exactly what I needed! I had 4 vesting events from last year with different sale dates and was totally confused about how to enter everything in FreeTaxUSA. The tool analyzed my documents and created a step-by-step guide showing exactly what numbers to put where in FreeTaxUSA. It flagged that my 1099-B was showing a $0 cost basis for some of my RSUs, which would have resulted in me paying taxes twice on the same income. It showed me exactly how to adjust this in FreeTaxUSA and saved me almost $1,800 in unnecessary taxes! The whole process took about 15 minutes and gave me so much more confidence that I was doing everything right.

For anyone still struggling with the IRS after filing RSUs with FreeTaxUSA, I'd recommend https://claimyr.com for getting actual IRS help. I used FreeTaxUSA last year for my RSUs, but then got a CP2000 notice from the IRS claiming I underreported my stock sales. I spent WEEKS trying to call the IRS directly with no luck - always busy signals or ridiculous hold times. I found Claimyr through a colleague and it was a game-changer. They got me through to an actual IRS agent in about 20 minutes. The agent confirmed I had reported everything correctly in FreeTaxUSA but explained that sometimes the IRS system doesn't properly match up the adjusted basis information. They helped me draft a response to the notice and the issue was resolved. Check out how it works: https://youtu.be/_kiP6q8DX5c - seriously the best money I've spent on tax stuff.

I need to eat my words from my previous comment. After continuing to struggle with getting through to the IRS about my RSU-related CP2000 notice (similar to what the other poster mentioned), I broke down and tried Claimyr last week. Honestly, I was 100% prepared to report them as a scam, but... it actually worked. After trying for TWO MONTHS to get through to the IRS myself with nothing but disconnections and "call back later" messages, Claimyr got me connected to an IRS representative in about 35 minutes. The agent was able to review my FreeTaxUSA return and confirmed that I had correctly reported my RSUs, but there was a mismatch in how the IRS computer system was reading the information. She helped me prepare a response to the notice that should clear everything up. I'm still shocked that this worked. If you're dealing with RSU issues that need IRS clarification, it's worth considering.

For anyone looking for a direct answer: YES, FreeTaxUSA can handle RSUs, but there are a few extra steps you need to take. 1) Make sure you understand what's already included in your W-2 (usually the full value of the RSUs when they vested) 2) When entering your 1099-B for any shares you sold, you'll likely need to adjust the cost basis to match the FMV on vesting date 3) The free version is sufficient, no need for the deluxe unless you want the extra support I've used FreeTaxUSA for 3 years with RSUs from different tech companies and it works great once you understand the adjustment process. Much cheaper than paying $100+ for TurboTax or H&R Block's premium versions!

anyone else think its ridiculous that we have to deal with all this complicated tax stuff just cuz our companies pay us in stocks sometimes?? like why cant the IRS and brokerages just talk to each other so this all happens automatically? ive been putting off doing my taxes for weeks cuz of my RSUs 😩

I've been using FreeTaxUSA for my RSU taxes for the past two years and it works perfectly fine! The key is understanding that most of the complexity comes from making sure you don't get double-taxed, not from the software limitations. Here's my simple process: 1) Import your W-2 normally (RSU income is already included), 2) When you get to the investment section for your 1099-B, manually enter the correct cost basis (the fair market value when your RSUs vested - this info should be in your company's RSU documents), 3) Check the box that says the 1099-B cost basis is incorrect if your broker reported it as $0 or some other wrong amount. The free version handles this just fine. I've never needed to upgrade to deluxe for RSU reporting. Don't overthink it - if you can handle entering your W-2, you can handle the RSU adjustments!