The 1099-b that I received from E*trade for my RSUs showed 0 for the cost basis. That’s what I reported in TurboTax and as I result I owed and paid much more taxes than expected. I read online that sometimes brokers don’t report the correct cost basis so I looked at the tax documents in my E*trade account and found a Supplemental Information document that shows the adjusted cost basis for the RSUs that vested last year. Should I have reported this adjusted cost basis and is this a valid reason to amend my 2023 tax return?
@ftang101 Your cost basis should be adjusted to reflect the amount that you had received in taxable income via w-2's for RSU's. Yes, file an amended return as you most likely will get a refund. You are not required to amend but, if it means a refund, then it may be worth it.
To amend your return, select your product and follow the instructions. First MAKE SURE TO SAVE YOUR RETURN AS AMENDED so that you DO NOT LOSE THE ORIGINAL FILE.
Note: If you have a state return, also select 202x state return and go through the state amendment steps.
To amend your state return, go through these steps:
Thank you for the detailed response. It is extremely helpful. I will wait until I receive my California state tax refund before amending my return. Couple of questions:
- Your instructions were for TurboTax online. I used TurboTax Premium installed on my home computer. Are the instructions the same?
- Also, if I need to fix something else (for the same tax year), can I do it at the same time or will that require submitting a second amended return?
Make the corrections you know about.
Form 1040-X becomes your new tax return,
If Part III Explanation space is too small attach another sheet.