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I received a Notice of Deficiency from the IRS for my 2018 taxes stating that I did not report RSUs (box 14 of my W2) as income. I went back to check and I uploaded my W2 properly, yet Turbotax missed this in my filing. Basically, here is what I found after investigating how this could have happened (numbers changed for simplicity):
W-2 box 14 (other): $10,000 RSU
1040, line 14 (other): $129
At first I thought it could have been my error. So I went back into TT, went to 2018 and selected "Amend my taxes." I re-uploaded by W-2, double checked all numbers were correct (confirmed that my RSUs in box 14 were $10,000), and resubmitted. It then spit out a 1040 with the same random number. I haven't had this issue in the past since my employer reports RSU as income in box 14. I receive a 1099-B but that is just for backup and many articles/chats confirm that I don't need to enter this. What is going on here? Was this a simple error on TT's part? Looks like my 1099-G wasn't reported too...
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The letter from the IRS was generated because you did not report the information on the Form 1099-B, not because of your W-2 Box 14 information. The Form 1099-B indicates that some of the RSU stock was sold and you need to report that as part of your return to show a gain or loss.
The information reported in Box 14 of your W-2 is simply there for information to let you know that RSU income was included in Box 1 of your W-2. That amount in Box 14 does not transfer to your Form 1040 in any manner.
Take a look at the following TurboTax article for more information and details. The video is particularly helpful:
What are restricted stock units (RSUs) and how do I report them?
Thanks for your reply. I should have clarified that I did “sell to clever taxes” when invested so what is being reported in box 14 is income. My CA SDI was also not properly from box 14, even though it’s been entered properly. My 1099-B reflects this too. Lastly, it looks like TT also missed my 1099-G (Income from my previous years state tax return) and I can confirm that was uploaded and reported. Still feeling stuck. Guess I’ll file a “complaint?”
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