@DianeW777 wrote:
Report the 1099-B separately under Investment Income instead of in the RSU section.
Thanks, by this do you mean answer "No, this is not employee stock" when asked in the software? As an alternative to that, I kept it as an RSU, but entered 0 for "Shares Withheld (Traded) to Pay Taxes" and manually adjusted the cost basis for the sell-to-cover transaction. That should be sufficient and accomplish the same goal, right?
I think this is the main point to try to make though... Nowhere in the TurboTax software does it lead the user towards marking RSU's as "not" RSU's or ignoring the prompt to enter "Shares Withheld (Traded) to Pay Taxes" on `sell-to-cover` sells if the sell shows on your 1099. It just prompts you to answer questions and if you answer them accurately or fill in the forms based on the correct/logical answer (ex: entering sold shares for "Shares Withheld (Traded) to Pay Taxes" when you literally do have "Shares traded to pay taxes" or accurately marking an RSU as an RSU) it can lead an average user astray very easily.
I'm sure to a tax expert it seems trivial but average TurboTax users don't know all the nuances they are relying on the software to lead them down the right path.
Luckily with helpful people like yourself 😃, and by doing research, users can figure out these situations where the software doesn't make real-world sense given the scenario.
Anyways, rant over -- Thanks again!
