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. If you get dividends on restricted stock, however, you must include them in your income as wages, not dividends. See "Restricted Property" in IRS Publication 525 Taxable and Nontaxable Income for information on restricted stock dividends.
Income received from restricted stocks will be reported as wages to you on your Form W-2 Wage and Tax Statement. You should still enter the restricted stock income in your wages on Form 1040.
To report restricted stock dividends that were also reported in your wages using the steps detailed in the Form 1099-DIV - Entering Dividend Income in Program FAQ. During the 1099-DIV entry process, on the special situations screen, check the box I had restricted stock dividends also reported as wages on my Form 1040 and enter the amount of restricted stock dividends included as wages in the box. Do not include the value of the restricted stock, only the dividends received on it.
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