Hi everyone,
I have several sets of RSU stock options that I sold, each resulting in both a transaction where shares were sold for taxes and a transaction reflecting the shares we sold to keep the profit. In my 1099-B, the transactions for the shares that were sold to pay taxes are listed as “Noncovered Securities/Form 8949 Box B”, and the transactions from the same release where the shares were sold for profit are listed under “Covered Securities/Form 8949 Box A”.
My problem is entering this fact correctly in TT. When I enter my 1099-B transaction for the shares sold for taxes, falling under Form 8949 Box B, TT asks me how many shares were in the entire release and how many of those shares were withheld for taxes--even though the amount withheld for taxes IS the transaction I am recording. Then later when I fill in details for the other segment of the release, by entering the 1099-B line-item for the balance of shares that were sold for profit (and specify that these are RSUs that fall under Form 8949 Box A), TT again asks me to specify the size of the entire release and how many shares were withheld for taxes. When all the transactions are compiled, TT believes I had exactly twice as many RSUs as I did.
Example, if I am being unclear: Say I had 100 RSU shares in the release valued at $1 each, 30 sold immediately for taxes and 60 sold shortly thereafter for profit. When I enter the line-item from the 1099-B under “Noncovered Securities (Form 8949/Box B)” for the 30 shares, TT then prompts me to record the size of the entire release (100 shares) and how many were withheld for taxes (30). Then when I go to enter the 1099-B line-item from my “Covered Securities (Form 8949/Box A)” for the 60 share segment, TT again asks me to fill in the release details, so I again enter that the entire release was 100 shares and 30 were withheld for taxes. In the end, the TT “Summary of Compensation Income From Employee Stock Transactions” tells me I have $200 in Additional Compensation Income rather than $100—it is recording both of those "releases" as unique entities, rather than allowing me to tie them together somehow to reflect that they are two different types of transactions from the same release.
As I enter my RSU sales in TurboTax Premier, how do I correctly complete the boxes in the TT “Enter Vesting (or Release) Information” screen to record first the Noncovered/Box B transaction that was withheld for taxes and then later the Covered/Box A transaction that was sold for profit from the same release? This screen seems to be the root of the issue.
I am sure I am not the only one in this situation! Thank you!
