Restricted stock and performance stock taxes can be complex. This article helps you understand how your award is taxed and what documents you'll need to file taxes in the U.S.

Restricted stock and performance stock taxes
What happens when your award vests?
83(b) election for RSAs & PSAs
What to do when you've sold your shares
What is cost basis and why is it important?
What documents will I need to file taxes?
Documents | Why you need it | When to use it | Where you get it |
---|---|---|---|
Form W-2 (1099-NEC for non-employees) | In addition to your wages, generally, this form includes the taxable income from your vested equity award. The W-2 also details the taxes withheld from the award. | When reporting your regular income taxes | Your employer will provide it during tax season. |
Form 1099-B | Form that reports your proceeds from investment sales. | To help calculate stock sale gains/losses when preparing your tax return. | From the broker that managed the stock sale (e.g., Charles Schwab). |
Schedule D; Form 8949 | Forms where you detail the gains/losses from Form1099-B and calculate capital taxes due. | To help calculate and report on stock sales capital gains/losses when you prepare your taxes. | From the IRS. |
Form 1040 | Form you use to report income to the IRS. | When reporting annual taxes – you'll report awardincome and gains/loss from sale on the form. | From the IRS. |