Income received from restricted stocks will be reported to you on your Form W-2, and will be reported as wages. To enter any restricted stock dividends that were also reported in your wages:
- Click on the Federal tab. On smaller devices, click in the upper left-hand corner, then choose Federal.
- Click Investment Income to expand the category, then click Dividend Income (Form 1099-DIV)
- Click Add to create a new form or Review to edit or review a form already created
- Click Step-by-Step Guidance
- Continue to the screen titled Dividend Income - Restricted Stock Dividends and enter any restricted stock dividends reported as wages on Form 1040, Line 7.
Note that you should still enter the restricted stock income in your wages on Form 1040, Line 7.
Restricted stock is stock that you get from your employer for services you perform. It is non-transferable and subject to a substantial risk of forfeiture. You do not have to include the value of the stock in your income when you receive it. However, if you get dividends on restricted stock, you must include them in your income as wages, not dividends. See Restricted Property
in IRS Publication 525, starting on page 13, for information on restricted stock dividends.