How to report RSU sales on your tax return
The vest income is already on your W-2. The sale goes on Form 8949 — with a cost basis your broker probably understated.
Two separate events
Vesting income appears in W-2 Box 1 and needs no extra entry. Selling the shares is a capital transaction reported on Form 8949 and Schedule D.
The basis trap
Brokers frequently report a cost basis of zero or of the amount you paid (nothing) rather than the value at vest. Left uncorrected, you pay tax twice on the same money.
The fix
Use code B on Form 8949 and adjust the basis to the fair market value at vest, evidenced by your supplemental broker statement. Keep vest confirmations for every tranche.
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