DavidD66
Expert Alumni

Get your taxes done using TurboTax

If you received a stock award (e.g. Resricted Stock, or RSUs), tax is assessed on the value of the stock on the day the stock vests/ is delivered.  That amount is ordinary income, and is included in Wages on Box 1 of your W-2 for that year.  Your cost basis is also the value of the stock on the day it vests or is delivered.  The problem is, brokers don't have (or don't report) that information.  If you know the amount that was added to your income, that is your actual cost basis.  In order to keep from paying tax on the stock award twice, you have to correct your cost basis.  To do so, go to that 1099-B transaction, and on the page with the Description, Date Acquired, Date of Sale, Sales Price, and Adjusted Cost or Other Basis, click on "I'll enter additional info on my own".  On the next page, enter the "Corrected cost basis"

 

The shares reported on Form 1099-B should only be the shares sold to pay your tax withholding on the RSU vesting.  The amount in Box 14 (which is informational only) should also have been added to box 1 of your W-2.  You will have to allocate the value of the RSUs at vesting among the units sold to pay taxes and the units you held.

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