3624 / How are dividends on restricted stock taxed?

Dividends received on restricted stock are extra compensation to an employee that must be included on the employee's Form W-2. Dividends received on restricted stock that the employee chooses to include in his or her income in the year transferred are treated the same as any other dividends. The employee should receive a Form 1099-DIV showing these dividends. These dividends should not be included in the employee's wages on the income tax return; instead, the employee should report them as dividends.