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    somu_banerjee's Avatar
    somu_banerjee Posts: 14, Reputation: 1
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    #1

    Jul 18, 2012, 04:21 PM
    Question on Restricted Stock Units
    Hi

    I have 7 restricted stock units given to me by employer on June 2011.These shares paid a dividend of 10.25$.I am not allowed to sell these stocks until December 2015.


    Do I need to report the dividend income on the stocks on my tax return?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 18, 2012, 05:35 PM
    Yes, the dividend is considered received when issued, dven if you can not immediately convert it to cash.
    somu_banerjee's Avatar
    somu_banerjee Posts: 14, Reputation: 1
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    #3

    Jul 18, 2012, 05:48 PM
    Restricted stock units issue dividend equivalents,which are technically not same as dividend
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Jul 18, 2012, 08:21 PM
    Okay; will Form 1099-DIV be issued at the end of the year to report these dividend equivalents?
    somu_banerjee's Avatar
    somu_banerjee Posts: 14, Reputation: 1
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    #5

    Jul 21, 2012, 10:06 AM
    Quote Originally Posted by AtlantaTaxExpert View Post
    Okay; will Form 1099-DIV be issued at the end of the year to report these dividend equivalents?
    I have to check that.There is an option to fill form W-9
    somu_banerjee's Avatar
    somu_banerjee Posts: 14, Reputation: 1
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    #6

    Jul 21, 2012, 10:38 AM
    RSUs are not shares of Capital Stock and do not convey any stockholder rights. The
    Company will not pay dividend equivalents on unvested RSU awards.

    This is what is mentioned here.So looks like the company won't give any dividend equivalent on unvested stocks.Vesting is in Dec1,2015
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