How to properly enter vested RSU not sold and no 1099

[target2019]

The situation is that I am helping someone with US tax filing. The individual has only foreign income, and that is entered properly, with foreign tax properly credited.

The next question is how to enter RSUs (Restricted Stock Units) which vested in 2019, but are not included on a W-2, since the foreign employer does not issue one.

The RSU lots are listed on a Solium statement, and I can see the value in USD. The shares and other information are included, but it is not clear at this time where to enter the information in TurboTax.

Is anyone familiar with handling RSUs not on a W-2 or 1099? I am thinking 1) these are ordinary income, and 2) the vesting price becomes the cost basis.

 

[cathy63]

In TurboTax, select Investment Income / Stocks, Mutual Funds, Bonds, Other. Add an investment sale and say No when asked if you got a 1099-B. That takes you to this screen, where you can select RSUs. Follow the subsequent screens, entering the numbers that would have been on the 1099-B, and when the last question asks "is it on W-2", answer No.

 

[target2019]

Thanks, Cathy.
I tried this, and now need to find a way to apply foreign tax paid if possible.

 

[cathy63]

I think you'll have to enter it as a regular foreign tax payment on form 1116, not as part of the RSU sale.

 

[target2019]

Ok, I didn't describe this accurately.
The RSUs vested, but were not sold.
The foreign tax paid was set by Australian Tax Office when shares vested, and paid in 2019.
The shares now sit in a Solium account. They have Cost Basis set at vesting share price.

The question is whether to include this information somewhere in TurboTax.

Thanks for your patience.

 

[cathy63]

Oh, I see! You never actually said they were sold, I just assumed that when I saw 1099 in the thread title. My bad. Sorry for misleading you.

Yes, you have to report it as income. The amount to use is the vesting share price x # of shares.

I would enter the income in Less Common Income / Miscellaneous Income / Other Reportable Income. This ends up on Schedule 1 Line 8 and 1040 Line 7a.

The other option is to report it as foreign earned income, which would add it to 1040 Line 1. You might already have foreign earned income if no W-2 was issued, so you'd just add the RSU income to the amount already there.

For the tax paid, it goes under Deductions and Credits / Estimates and Other Taxes Paid / Foreign Taxes. Again, you might have to add it to a number that's already there.