ThomasM125
Expert Alumni

Get your taxes done using TurboTax

I don't fully understand what you mean but I can explain how the process works so that may help you determine if you are reporting things correctly. On your W-2 form, the value of the restricted stock units (RSU's) will be reported as wage income in box 1 in the year that they vest, assuming you don't pay anything for them. If you know how many shares vested, you can divide the RSU income in box 1 on your W-2 form by the number of shares vested to get the cost per share. You multiply that by the number of RSU shares sold during the year to get the cost basis of shares sold. You compare that to the cost basis reported on your Form 1099-B reporting the sale of RSU's and adjust that cost basis accordingly.

 

For the employee stock purchase plan shares (ESPP), you would do a similar exercise. Find the income amount associated with the discount you received when you acquired the shares as reported on your W-2 form and divide that by the number of shares acquired to get a discount cost per share. Multiply that by the number of shares sold and you will have the discount portion of the cost of the shares sold, which you can compare to the cost basis reported on your Form 1099-B to determine if you need to adjust that cost basis to include the discount, which is often omitted.

 

 

So, you need to look at your W-2 form to identify what is the employee stock income and make sure it is included in the cost basis reported on the Form 1099-B entry. Often the Form 1099-B will simply report the price you paid for the shares times the number of shares sold, and ignore the income reported on the W-2 form, which also must be included in the cost of shares sold as reported on the Form 1099-B.

 

 

 

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