Can anybody guide me how to deal with RSU situation where Tax was withheld, as well as all remaining RSUs I sold in same tax year 2018. Broker - Etrade

[shashidivekar]

I need help for my RSU tax withheld and rsu sale.  

What I need to do for following case -   In 2018, I  received 50  RSUs. 12 were automatically sold as Tax Withheld. Remaining 38 I sold in the same year (2018). My brokerage account is Etrade. After I imported my tax information into Turbotax, suddenly it started showing me huge taxes (while already taxes were withheld for those 50 RSUs). Can anybody guide me how to deal with this situation? (i.e. Tax withheld on RSUs, as well as all remaining RSUs sold in same tax year).

[DDollar · Accepted solution]

You will have to adjust you cost basis for the stock sold.  Brokers do not adjust cost basis to account for the income reported when the RSUs vested.  The value of the RSUs were added to you income, therefore, that same value is your cost basis in the RSUs.  You will edit the saels transaction or transactions for the RSUs.  It may be necessary to delete them and re-enter manually.  You should enter the basis reported by the broker, and then enter an adjustment to the cost basis.

[shashidivekar]

Thank you very much. Can you answer the other question - What to do of RSUs which were  automatically sold as Tax Withheld?

[DDollar]

Were they "withheld" to pay for taxes, or were they delivered and sold?  If they were withheld, you do nothing.  If they sold and are on the 1099-B, then cost basis = proceeds.

[shashidivekar]

Thank you very much TurboTaxDavidD

[DDollar]

You're welcome.  If you have any trouble entering your transaction, circle back and post a comment.  Thanks for using TurboTax!!