Can someone explain me how to reclaim taxes from an RSU sale due to BUW being turned on? Accidentally turned this one, resulting in +24% tax (total of 54% tax now)...

[tdatenhacken]

Have a 1099-B form and have matched the sales proceeds with the cost basis. However, due to BUW being turned on, my tax has been 54% (increase of 24%). I would like to retrieve the additional tax paid, but am unable to find a way to do so through the interface

[tdatenhacken]

Summary of what we did now:

• The RSU income is already included in the W-2 (Box 1 and Box 16), so we are not manually reporting it again as income.

• The federal and state taxes withheld at the time of the RSU sale are not included in the W-2 and should be entered separately in the 1099-B section.

• These withheld amounts should be entered as federal and state income tax withheld in the detailed 1099-B entry for the RSU sale, which we did.

• We are not entering Medicare tax, Social Security tax, or CASDI (California SDI) manually, as those are already part of payroll and included in the W-2.

My two questions here:

1. Is the above correct?
2. How do we ensure that the 24% tax we paid on top of it (BUW) is reclaimed? Or will this be done automatically?

[ThomasM125]

The above is correct. The tax withheld should be listed in box 4 and 16 on your Form 1099-B. When you enter the investment sale in TurboTax, you will see an option to indicate that your Form 1099-B has additional boxes. You need to click on that box to see the box 4 and 16 where you can enter your backup withholding.

Also, since you are dealing with restricted stock units, when you enter the stock sale you need to be sure you include the vesting income in your cost basis, so the capital gain on sale of the stock to pay your taxes will be minimal. You will see an option when you enter the Form 1099-B to indicate that the basis reported on the Form 1099-B is wrong or missing. Choose that option and then enter the corrected cost basis.

[tdatenhacken]

Thanks for getting back to me, Thomas. 

Good to hear that. I have added box 4 and 16. Does this automatically get the 24% that I paid too much back? Where can I review this so that I can see it? When I continue to the review, it does not provide me with those details.

With regards to your second paragraph - when you say vesting income, what do you mean? The full sale is all tax - so do I need to add the total amount of stocks (i.e., also add the ones that are now vested)?