Restricted Stock Unit (RSU) W2 Coding

[airKevin]

I have a Restricted stock option (RSU) on a W2. This value of the stock that vested is noted in box 12 with a code of "V", and is included as income in box 1, and taxed as ordinary wages. The 10990-B has a sale with zero basis that must be adjusted for this amount that is included in wages to avoid doubling of income. I understand how this works.

Box 14 gives a figure for "RSU Gain", which information on the RSU that vested.
My question is about a second figure I see in Box 14 that I haven't seen before: "RSU Impted" (short for imputed I assume). What is this?

[Rapid Robert]

I have a Restricted stock option (RSU) on a W2. This value of the stock that vested is noted in box 12 with a code of "V", and is included as income in box 1, and taxed as ordinary wages. The 10990-B has a sale with zero basis that must be adjusted for this amount that is included in wages to avoid doubling of income. I understand how this works.

Box 14 gives a figure for "RSU Gain", which information on the RSU that vested.
My question is about a second figure I see in Box 14 that I haven't seen before: "RSU Impted" (short for imputed I assume). What is this?

I suggest you need to dig deeper, because there is more going on here. I have several clients who have been getting all kinds of equity compensation in the form of stock for years, and I've just been looking at some relevant W-2s, so take my comment for what you think it's worth. I have seen situations where RSU, ISO, NQSO, and ESPP have all happened in the same year.

Code V in Box 12 does NOT correspond to RSUs. Code V is for use with the exercise of non-statutory stock options (NQSO). An RSU is not a stock option at all. RSUs if reported explicitly on the W-2 at all will only be shown in Box 14. Year end paystub will be more helpful to look at, as it will usually provide more of the story.

Your client most likely has both NQSO (Code V) and RSUs. If the employer runs the stock grants and options through a brokerage like Schwab or Etrade, the taxpayer should be able to get some details on exactly what is what.

I would not automatically assume that "Impted" means "imputed", although it could -- I have not run into that particular term. With RSUs, several things can happen -- they can be held for future sale, they can all be sold immediately, or maybe only some are sold to cover tax withholding. Also, because the RSU are part of wages but are not actual cash, the paystub has to show RSU offset as a "deduction" from pay since the employee received some pay in non-cash form and the net cash paycheck has to account for that.

[airKevin]

The client did get a 1099-B - and all the numbers added up as expected: Vested and sold the same day with slight ($85) loss as I usually see. Broker has a supplemental basis statement that includes amount included as wages. I'll keep digging to be sure.

[JON]

Resticted

Usually can mean some of the shares being exercised are retained for the cost of the shares. There is no taxable event, the problem is hopefully someone is tracking the costs of the shares now owned.