Is it possible that my W2 incorrectly is omitting my RSU sell to cover proceeds? Using round numbers for my situation:
- I received 100 shares RSU, 40 were sold to cover taxes at vest date
- I sold 50 shares at a later date, leaving me with 10 shares held
- W2 income box 1 includes income from all 100 shares vesting at FMV on vest date, as expected
- 1099B shows two transactions: 40 shares sold to cover, 50 shares elected sale (basis is not reported, but I know to correct this from statements)
- W2 income box 2 does not include proceeds from 40 shares sold. It only shows my paycheck withholding amount
In this case it seems to me that I am being taxed for the 40 shares sold to cover RSU grant since it appears on my income, but am not being credited for the proceeds from that sale to actually pay for the RSU grant. Is this correct?
I have tried using the step-by-step guide in TurboTax 1099B section to try two different ways of reporting this:
- combining all 100 shares into a single item, stating 50 sold, 40 withheld for taxes
- following 1099B and listing two items: 40 shares sold with 40 withheld for taxes, and then 50 shares sold and 0 shares withheld for taxes
It seems like both methods have same end result, I'm assuming this is fine either way, but am I reporting this correctly, or is my W2 incorrectly filed? By proceeding this way, is Turbotax correctly adjusting my withheld amount on top of what is reported in my W2 box 2 (which is just payroll withholding)?
Thanks in advance!
