In 2021 I had:
- RSUs that were vested in 2021. My RSU administrator has STC. So upon vesting STC to cover income taxes. Both the income and income tax from the RSUs were reflected in my W-2. Income from RSU vested in 2021 was A.
- I also sold previously vested RSUs from before 2021. The income and income tax from these RSUs were reflected on my previous years' W-2 (2020, 2019, etc). Incomes from these lots were say B (2020) and C (2019). Note: assuming basis = sale_price, in 2020 I earned B+B_STC as income, and sold B_STC to pay for income tax, similarly in 2019 I earned C+C_STC as income and sold C_STC to pay for income tax.
The above transactions were included in the 1099-B my RSU administrator sent me. When I go through Turbotax I was asked:
I select "yes" for all of these sales. But when I finish entering the all relevant info I was asked with this pop up:
My question is why would A + B + C show up in my W-2 for 2021, since B + C were proceed from sale of previous years' vested shares after STC, meaning, in 2020 my W-2 showed B + B_STC for income and B_STC paid for income taxes, and similar in 2019 C + C_STC for income and C_STC for taxes paid.
I have records of my 2020 and 2019 W-2 so B and C are tracked on there. If the wizard is asking me: can all your RSUs be tracked for the years they were vested, so that the income and income taxes associated with each year are tracked and reported in the W-2s, then yes. But if it's trying to confirm if they all show up in 2021's W-2 then no. And it shouldn't IMO, the B + C were proceeds from RSUs I earned in 2020 and 2019, so why would they show as earned income in 2021 W-2?
Is this a poorly designed workflow from Turbotax and I should just select "yes" and assume it meant I can track the sources of the RSUs on my W-2s, whichever year they were earned?
