All Posts

You don't need an RSU option for the sale of RSU shares.  RSUs are pretty straight forward; therefore, I recommend you enter your transactions without indicating you are reporting the sale of company stock.  Indicating that is company stock has no impact on what's reported to the IRS.  It only affects what screens and questions you get in the TurboTax interview.  When RSUs vest (the stock is delivered) the entire amount is ordinary income subject to income, social security, and Medicare tax withholding.  Your employer must collect payroll taxes, or sell shares to pay it.  Since you are taxed on the entire amount, your basis is the amount that is added to your W-2 which you are taxed on.  If you retain the stock, any gains on the sale will be short term if you hold the stock one year or less, and long term if you hold it more than one year.   Your cost basis is the total value on the date the RSUs vested.  This is also the amount that it is added to your income and included in Box 1 of your W-2. To get your cost basis per share, divide the total value upon vesting (the amount added to your income) by the total number of shares represented by the RSUs.   When brokers report the sale of RSU stock, they usually report a cost basis of zero, or an amount that is not correct.  When you report a Form 1099-B with RSU stock sales, you have to enter an adjustment to the cost basis.    If shares were sold, to pay the payroll taxes you will have two transactions.  The cost basis (per share) and acquisition date will be the same for both transactions, and they will both be short term.  The proceeds and sales date will be whatever is reported on the 1099-B.

If you go to the Select the months each of you had health insurance in 2025 and click the months you had it, TurboTax Will apply the short term gap.     You must indicate "I'll pick who had it and which months" on the Did you both have health insurance coverage in 2025?  

Sorry man, it was my error.  After typing the last reply, realized I needed to look at that input screen you referenced one more time.  The very first box needed to be checked so I could re-enter the bloody ordinary income again.  Once that box was checked, it revealed a place for data input and that cleared the flag.  Thank you for leading me to it.

THANK YOU to all of you - I have had this same issue with the 2025 withholding amount messing up estimated tax. I greatly appreciate the solutions.   As FYI, even though I created a fake W4 with $0 withholding, I still had to manually override the 2025 withholding amount for everything to resolve on the vouchers. Thank you again.    K

Although I  think I might  only   use the $ 7000 next year as the existing basis and zero out the the original  $4000  IRA basis as I no longer have the  forms 1040/ 5498/ 8606  to prove the current existing IRA basis of $ 4000  :(     (unless there is another way to prove it).  

You will enter them as estimated tax payments.  See Where do I enter my estimated tax payments? You can e-file the tax return. When the program asks how you want to pay, select Mail a check. Mail the checks with the vouchers. Fed 1040-V - be sure to include wife's SSN and 2025 1040 on the memo line NY IT-201-V - same as above Mail forms with tracking to address listed. Do not require a signature. Tips: Your wife may be subject to self-employment tax and the UN usually reimburses the employer half. Leave any penalty blank for the IRS to calculate. The UN may be able to resolve the issue.

This year I caught that it was missing, even though I answered all the questions, and corrected it manually. Prior years however I didn't notice it and need to amend returns. Why is the program missing this even though I answer all the decedent information? I think this is something that needs to be corrected in the desktop system. I didn't have this issue with the online version many years ago.  Thank you for your help

It's a bit confusing as to what product you used.   Did you prepare you return in the desktop software from Costco?  Costco only sells the desktop version to install on your computer.  Hopefully, you didn't try to prepare it in Online TurboTax by mistake.   What does the $30 refer to?  Are you referring to the state efile fee in the desktop product?   If you are using desktop software, there is a $25 fee (plus sales tax) to efile each state return (except no state efile fee for NY state.)    Is that what you are referring to?    There is no state efile fee if you choose to print and mail the state returns.   NOTE:  If that's your situation, also be aware that if you choose to pay that state efile fee out of your Federal refund, there is an additional $40 service fee ($45 for California filers.)   You will  avoid the extra fee by paying the state efile fees upfront with credit/debit card.   If that's not your situation, then you will need to explain more.

Generally, when you enter Schedule K-1 for an S-Corp, TurboTax will provide a sub-form with Form 7203 for you to fill out manually. If you missed it the first time, go back to the K-1 entries and work through the interview again.   It's possible you don't need Form 7203 this year if none of the following conditions apply:  Are claiming a deduction for their share of an aggregate loss from an S corporation (including an aggregate loss not allowed last year because of basis limitations),  Received a non-dividend distribution from an S corporation,  Disposed of stock in an S corporation (whether or not gain is recognized), or  Received a loan repayment from an S corporation.  TIP: It may be beneficial for shareholders to complete and retain Form 7203 even for years it is not required to be filed, as this will ensure their bases are consistently maintained year after year.