RSU tax return mistakes to avoid

Equity mistakes are rarely aggressive positions. They are omissions and defaults nobody corrected.

Double taxation on basis

Accepting a zero cost basis from the 1099-B is the single most expensive error.

Ignoring the withholding gap

22% supplemental withholding plus a 37% marginal rate equals an April surprise and possibly penalties.

Missing state allocation

If you moved states between grant and vest, income may be allocable to more than one state.

Forgetting ESPP and ISO forms

Forms 3922 and 3921 are informational but drive basis. File them away with the return.

Wash sales

Selling at a loss near a vest date can disallow the loss.

This article is educational and not tax, legal, or financial advice. Talk to a CPA or tax advisor about your specific situation.

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