Individual Tax Preparation for Stock Compensation

CPA for RSU and ESPP Taxes

RSUs, employee stock purchase plans and employer stock sales can make an otherwise ordinary individual tax return surprisingly complicated.

TaxReturn.cpa prepares individual tax returns involving restricted stock units, ESPPs, brokerage reporting and other investment activity. We look at the W-2, brokerage statements and stock-plan records together so the return reflects the full transaction rather than treating each tax document in isolation.

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Individual tax preparation starts at $650.

Why Stock Compensation Creates Tax Complexity

Employer stock compensation can create more than one tax event. Income may first appear through payroll and then appear again when the shares are sold through a brokerage account.

With RSUs, compensation associated with the shares may already be reflected in your W-2. If you later sell those shares, the sale is generally reported through the brokerage system and may also need to be reported on Form 8949 and Schedule D.

The important issue is not simply whether a Form 1099-B exists. It is whether the cost basis and other information used on the return properly reflect what already occurred through payroll and the stock-compensation plan.

If your return also includes ordinary brokerage activity, see our individual tax preparation services for the broader types of investment and complexity we handle.

Where RSU and ESPP Returns Commonly Go Wrong

Incorrect Cost Basis

Brokerage basis information does not always tell the whole story for employer stock. If compensation income has already been recognized, the basis used on the tax return may need careful review to avoid misstating the capital gain or loss.

Treating the W-2 and 1099-B Separately

The W-2, brokerage statement and stock-plan supplement may all describe different parts of the same economic transaction. Reviewing one without the others can lead to incorrect reporting.

Assuming Sell-to-Cover Settled the Tax

Shares withheld or sold when RSUs vest can help cover withholding, but that does not necessarily mean your final federal or state tax liability is fully covered. Your total income and withholding still have to be considered on the return.

Missing ESPP Holding-Period Rules

A qualifying ESPP can produce different tax treatment depending on when the stock was acquired and sold. The holding period can affect the division between compensation income and capital gain or loss.

Why Your 1099-B Cost Basis May Need a Closer Look

Form 1099-B reports securities sales and may report a cost basis for covered securities. But employer stock compensation can involve information that originated outside the brokerage account.

IRS rules specifically contemplate basis adjustments on Form 8949 in situations where the amount ultimately reported on the tax return differs from the basis information shown by the broker. That is one reason we want the complete stock-plan records rather than only the year-end brokerage summary.

The practical goal is straightforward: properly distinguish compensation already recognized from the separate gain or loss created when the shares are sold.

RSUs and ESPPs Are Not the Same Thing

Restricted Stock Units

RSUs generally involve compensation when the award becomes vested and the shares are transferred or settled. A later sale can then create a separate capital gain or loss.

Employee Stock Purchase Plans

A qualifying Section 423 ESPP has special rules. The tax treatment of the eventual sale depends in part on whether the required holding period was met. IRS guidance describes that holding period as the later of one year after the stock was transferred to you or two years after the option was granted.

Form 3922 can help track the acquisition information used in determining holding periods and basis for qualifying ESPP shares.

What We Review for an RSU or ESPP Return

Depending on your situation, we may review:

  • Form W-2 and stock-compensation information
  • Form 1099-B and consolidated brokerage statements
  • RSU vesting and release records
  • Supplemental stock-plan statements
  • ESPP purchase and sale records
  • Form 3922 when applicable
  • Reported and adjusted cost basis
  • Short-term and long-term capital gains and losses
  • Multiple brokerage accounts
  • Other investment income reported on the return
  • State tax reporting when applicable

You can see the broader categories of returns we prepare on our What We Prepare page.

What If You Moved Between States?

Stock compensation can become more complicated when vesting, employment and residence occur in different states.

If you moved during the year, worked in more than one state, or received employer stock connected with employment in another state, include that information in the See Your Price questionnaire. Multi-state filing requirements can affect the preparation level.

We'll also be adding a dedicated CPA for Multi-State Tax Returns resource to TaxReturn.cpa.

How Much Does CPA Tax Preparation With RSUs or an ESPP Cost?

The presence of stock compensation doesn't automatically tell us how difficult the entire return will be.

A taxpayer with one well-documented RSU sale and otherwise straightforward tax reporting is different from someone with numerous vesting events, ESPP sales, several brokerage accounts and multi-state filing requirements.

Our individual tax preparation pricing is based on the overall complexity of the return. Individual tax preparation starts at $650, and the See Your Price questionnaire determines the preparation level before you decide whether to engage us.

Know the Process Before You Hire Us

TaxReturn.cpa is designed so you can understand the process before becoming a client. You can see your preparation price and current production availability online.

After engagement and payment, you'll choose an available production date and provide your documents through our secure client process.

Your production date is not an appointment. It is the date your completed information is scheduled to enter our preparation workflow.

When all required information is complete by your production date, we expect to complete your return by the end of the third week following that date, subject to significant unexpected issues.

Learn how the TaxReturn.cpa process works →

Frequently Asked Questions About RSU and ESPP Taxes

Are RSUs taxed when they vest?

Generally, compensation associated with restricted stock becomes taxable when the property becomes substantially vested, unless a different rule or election applies. A later sale of the shares can create a separate capital gain or loss.

Why does cost basis matter with RSUs?

Because compensation income connected with employer stock may already have been recognized through payroll. If the sale is later reported using an incorrect basis, the capital gain or loss can also be incorrect.

Does sell-to-cover mean enough tax was withheld?

Not necessarily. Sell-to-cover or share withholding may satisfy some withholding associated with vesting, but your final tax liability depends on your entire return, including total income, deductions, credits and other withholding.

What documents should I keep for an ESPP?

Keep your W-2, complete brokerage statements, stock-plan records and Form 3922 when one is issued. Form 3922 can provide information relevant to the holding period and basis of qualifying ESPP shares.

What if I have regular stock sales in addition to RSUs?

That's fine. We prepare individual returns involving ordinary brokerage activity, capital gains and losses, as well as employer stock compensation. The overall investment activity helps determine your preparation level.

Can you prepare a return with RSUs from more than one employer?

Yes. Multiple employers, brokerage accounts, vesting schedules or stock plans may increase the complexity of the return, but they can be evaluated through the See Your Price process.

Ready to See Your Tax Preparation Price?

You don't have to decide whether your RSUs, ESPP or investment activity makes your return Standard, Plus, Complex or something that needs individual review.

Answer a few questions about your tax situation and we'll show you the preparation level and price before you decide whether to move forward.

Know your price. See current production availability. Know when your return is expected to be completed.

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Reviewed by Marc Boulanger, CPA | Updated September 2026