Hi, I had a few RSU shares vest in 2019. I only recently realized that despite the 1099-B showing a showing a cost basis of $0.00, I do have to report these on my tax return. Let me share an example:
Lets assume in 2019, 100 shares vested at a market value of $10 and I chose to sell-to-cover 30 shares at a price of $10 to cover my taxes due and 70 shares remained with me.
My 1099-B shows "Total Proceeds" of $300, corresponding to the shares I sold to cover my tax obligations, but it also shows a cost basis of $0.00. I am guessing the correct way to do this is to somehow indicate a cost basis of $300 in the 2019 tax return i.e. under Box 1d "Sale Proceeds" I should enter $300 and under Box 1e "Cost or other basis" I should also enter $300, otherwise when I sell the balance 70 remaining shares, it would look like I haven't paid any taxes on them. For eg. if the stock price rises to $15 and I decide to sell my remaining 70 shares, my correct taxable income should be "=70 x ($15 - $10)" and not "=70 x ($15 - $0)"; is this correct?
If it is correct that i have made a mistake in not reporting this my follow-up question is, now that i have already filed 2019 return, how do i correct this mistake? I am using Turbo Tax Premier 2021.
Thanks.
