- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
You do not need to go through the Employer Stock questions if you know the cost basis of your Restricted Stock Units and the value was reported in Box 1 of your W-2 and taxes withheld. Report as two separate transaction - one for shares sold to cover taxes, if applicable, and one for the other shares.
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"
**Mark the post that answers your question by clicking on "Mark as Best Answer"