Can I manually enter an adjustment to the cost basis of an RSU sale in TT? TT interview questions end up changing cost basis line item and not adjustment line item.

[castellano-micha]

My 1099 didn't report the cost basis, so I entered $0 in TurboTax as the cost basis.  These RSUs were already taxed in my W2 and I know the adjustment I need to make using transaction records.  Whenever I go through the detailed TT interview questions, it ends up changing the actual cost basis and doesn't appropriately show up as an "adjustment".  Is there a way I can just make the adjustment on my own?

[DavidD66]

Yes, if the value of your RSUs was included in your W-2, and you know the adjustment, you can make it yourself.  I would delete whatever you have entered for the transaction and start over.  On the first input screen, under Sales Info, indicate "Stock (non-employee) for "What type of investment did you sell?"  Continue and towards the bottom of the screen check the box for "The cost basis is incorrect or missing on my 1099-B"  See the screenshot below. On one of the following screens you will be able to enter the adjusted (correct) cost basis.

[castellano-micha]

Thank you for the recommendation.  Is it ok to enter it as "Stock (non-employee) when it was actually an RSU given to me as a long term incentive at the company I'm employed with?   Also, when is asks, "how did I receive this stock", do I just put "I purchased it"?  I guess I'm wondering why TurboTax doesn't let me manually enter an adjustment on an RSU or and ISO, but it will for Stock (non-employee).  Seems like an oversight on their part and also strange that anytime you go through the TT interview questions for RSU or ISO it changes the actual cost basis reported from $0 to whatever it calculates and doesn't actually put it in the "adjustment" column.

[castellano-micha]

Actually, I just tried what you suggested and it does the same thing for "Stock (non-employee) that it does for RSU and ISO.  See below.  Why doesn't it show up under the "adjustment" column?  It overwrites the $0 in the Cost basis and replaces it with $10,500.  Is it appropriate to report it to the IRS that way, with a modified cost basis instead of as an "adjustment"?

Description     Date sold or disposed      Sales section     Proceeds        Cost basis      Adjustment    Gain/Loss

Stock                03/17/2020                         Box B                  $10,000.00    $10,500.00    $0.00               -$500.00