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Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.

Restricted Stock

Restricted stock, RSUs, and performance shares have become prominent forms of stock grant. Browse an overview of this section below, or explore the subtopics to the left.

In addition to the main areas about basic and advanced topics in all these types of grants, see the special subsections that are exclusively about restricted stock units and performance shares.

Test Your KnowledgeTest and improve your knowledge with our Restricted Stock & RSUs quiz and its study guide in the answer key.

Want to know more? Got a few minutes? Listen to our podcast on restricted stock and restricted stock unit basics!

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How To Report Sales Of Company Stock On Your Tax Return

The Tax Team
Learn how to report sales of stock on your tax return. Annotated diagrams of Form 8949 and Schedule D help you make sense of the reporting rules.

Restricted Stock & RSUs: What You Must Know To Avoid Tax-Return Mistakes This is premium content

The Tax Team
The 2014 tax-return season has the potential to be more confusing than most if you sold stock in 2013. Read this article for tips on crucial topics relating to restricted stock and restricted stock units.

Restricted Stock Units Made Simple (Part 1): Understanding The Core Concepts

Matt Simon
Restricted stock units (RSUs) have become the most popular alternative to stock options. While RSUs share many of the same issues as restricted stock, there are differences, and it is important to understand the basics of RSUs in their own right.

Restricted Stock Units Made Simple (Part 2): Taxation This is premium content

Matt Simon
The taxation of RSUs generally resembles that of restricted stock but carries some important differences.

How To Avoid Paying Too Much Tax: Understanding The Revised Form 1099-B & Form 8949 For Reporting Stock Sales On Your Tax Return This is premium content

Bruce Brumberg
The stock-sale information provided by brokers on IRS Form 1099-B has changed. Cost-basis reporting, both for your broker on Form 1099-B and for you on your tax return, is now more complex, confusing, and vulnerable to errors. This article explains the crucial facts you must know to avoid overpaying tax or attracting unwanted IRS attention.

Restricted Stock 101: Five Essentials Of Restricted Stock & RSUs This is premium content

Matt Simon
While restricted stock and RSUs are relatively straightforward, they have technical aspects you must understand to make the most of them. Learn the essential facts of restricted stock and RSUs, including basic concepts, vesting schedules, and tax treatment.

Restricted Stock: Tax, Financial, Estate, And Retirement Planning (Part 1) This is premium content

Richard Friedman
Understand financial planning for restricted stock and RSUs. Part 1 discusses the growing popularity of these grants, their special features, and the related tax planning.

Stockbrokers' Secrets (Part 8): What I Tell My Clients About Their Restricted Stock And Performance Shares This is premium content

W.E.B. Bantling
Many companies have turned away from stock options and begun to make outright stock grants that must vest before the shares can be issued. For employees, these grants have added a new layer of complexity to their equity compensation. This article presents six questions I get all the time from clients who have received restricted stock, restricted stock units, or performance shares.

How Tax Rate Changes Impact Your Stock Grant Strategies (Part 2): Restricted Stock This is premium content

Stanley Trotta with Robert Gordon
With tax increases in mind, now may be a good time to re-evaluate your current financial-planning strategy for equity compensation and company stock holdings to determine whether action is required. Part 2 looks at restricted stock and restricted stock units.

Tax Planning For Options, Restricted Stock, And ESPPs After 2013 Tax Law Changes: High-Income Taxpayers Impacted Most (Part 1)

Tom Davison and William Whitaker
NEW! The beginning of 2013 brought notable shifts in tax rates for people at higher income levels. Part 1 surveys the important tax changes and considers their impact on planning.

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What are the top 10 questions I should ask about my grant of restricted stock or RSUs?

You should know the answers to the following questions. Understanding the topics involved will help you make the most of your restricted stock/RSU grant and prevent costly mistakes...

What is restricted stock? Does it differ from restricted securities?

Don't confuse restricted securities and restricted stock. They are very different...

Does this website's content on restricted stock also apply to restricted stock units (RSUs)?

Generally, yes, with two exceptions. First, with RSUs you cannot...

Why do many companies grant restricted stock and RSUs instead of stock options? This is premium content

The compensation philosophies of companies are continually changing under the influence of many factors, from accounting rules to...

What advantages do restricted stock and RSUs have over stock options? How do the two grant types compare?

Restricted stock always has some value to you even when the stock price drops below the price on the date of grant...

Why do companies shift from granting stock options to granting restricted stock units, and then sometimes back again to granting at least some stock options?

Surveys indicate that many companies use a variety of grants, including both stock options and restricted stock units (RSUs) in tandem. There are many possible reasons why a company might switch from options to RSUs...

What is the difference between restricted stock and restricted stock units (RSUs)? This is premium content

While they are siblings, they have important differences, as explained below and as shown by the chart. The traits of restricted stock units include the following...

What are the biggest mistakes with restricted stock or RSUs that I can make on my tax return, and how can I avoid them? This is premium content

It is all too easy to make tax-return errors that lead to paying more than necessary or (perhaps worse) an IRS review. Learn how to prevent expensive mistakes...

What are the big changes in 2014 with reporting stock sales on my tax return? Why have these changes occurred?

Major changes have occurred in the tax reporting and filing for stock sales during the past few years, making accurate reporting more complex and difficult...

What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase? This is premium content

You will need to gather certain information to complete your tax return. The broker will send you IRS Form 1099-B for the proceeds...

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