Entering RSUs on Turbotax

[shanku98]

Could you please advise on step-by-step instructions on how to enter RSU sales on the online version of Turbotax for the 2019 tax year? It seems like the process looks slightly different every year and throws me off. In my specific example, after I imported my 1099-B form into TT, I get 3-4 RSU sales that show up as Box X checked and are not actually part of the 1099-B form. My brokerage did include these sales as a separate statement. I know what date the RSU vested and what date I sold a certain number of RSUs and from the statement I gather the gross proceeds from the sale as well as there is a cost basis reported on the statement. The cost basis shows up as 0 in the imported sale into TT. So, I need to correct the cost basis. Please advise if I should go through "I need help determining the cost basis" or is there an easier way to just report the correct cost basis that I got from my brokerage. If I go through "I need help determining cost basis", I end up in a screen where I am asked for how many RSUs vested and how many were withheld for taxes. I am not sure about where to find this last bit of information, and it is not clear if it is even necessary to provide. Please help. Thanks.

[RobertG]

You need to know how many RSUs vested and how many were withheld for taxes in order to determine your basis.

You should be able to find the grant information on your 1099-B form or your consolidated statement. If you can’t find this info, contact your brokerage or your employer's stock plan administrator.

To report RSU sales in TurboTax:

When you enter you 1099-B information you will be asked: 'Do these sales include any employee stock? This includes ESPP, RSU, RS, NQSO, and ISO' Say yes.

Then you will be asked 'What type of investment did you sell?' Select 'Restricted stock units'

Check the box that says 'The cost basis is incorrect or missing on my 1099-B'

Then select 'I need help figuring out my cost basis'

[shanku98]

Thanks Robert! Is the information on number of RSUs vesting and withheld for taxes used to calculate the cost basis? Following is the difficulty I am having. Let's say I had lots called A and B vest on March 1 2019 (let's say A was granted in 2017 and B was granted in 2018), and I sold "a" RSUs on September 1 2019. In my trade confirmation or consolidated statement from my brokerage, I only see sale of "a" RSUs without any mention of which lots they belonged to (A or B). So, I am not sure which lot am I supposed to use to determine RSUs vested and withheld for taxes. Can I use either, since the "acquisition" date would anyway be March 1, 2019 and the cost basis per share would be based on the stock price that day?

[DianeC958]

Yes, all of the shares you received as RSUs are used to calculate the cost basis.

The RSUs do not belong to you until the vest. So your vested date is March 1, 2019 for both lots it does not matter if they were sold from lot A or Lot B.

Yes, the cost basis is the Fair Market Value on the date the RSUs vest.

When your shares vest your employer calculates an amount of compensation for those shares, and reports that in Box 1 of the W-2, so you're going to pay taxes on that compensation.

You need to report the sale of the shares and put in the cost basis so you are not taxed on the sale of the shares twice.

@shanku98 

[K-Girl]

You say: When you enter you 1099-B information you will be asked: 'Do these sales include any employee stock? This includes ESPP, RSU, RS, NQSO, and ISO' Say yes.

However, I'm not getting this question. Is there a resource that walks me through to show me how I get this question to come up?

[AnnetteB6]

Start by entering the details from your Form 1099-B that reports the sale of the stock.  Then, one of the follow-up questions will ask if the sale included employee stock.  When you answer 'yes', additional questions will come up.

Use the instructions in the following TurboTax article to get started by entering your Form 1099-B:

Where do I enter a 1099-B?

@K-Girl

[vitan_6]

My RSU's got vested and the employer withheld taxes on them. However, I did not sell any of the stock units during the entire year. My Brokerage did not provide me 1099-B saying that there is no sale, I am not sure if that is correct since my employer already withheld taxes (stocks) and I have remaining shares.

Is the brokerage supposed to provide me 1099-B in this case ?

[AmyC]

If you did not sell stock, there would be nothing to report. However, if the company sold shares to cover taxes, it would seem there should be a sales statement. If the company retained the shares to cover taxes, then there was no sale.

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your  carryover information, and proof of your basis in your various investments. You must keep tax records  from the time you vest/purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses / carryforwards/ basis.

@vitan_6

[IS5013]

I have a similar question as well.  I have RSU's that vested in 2021.  I did not sell any but the company did sell off shares to satisfy the taxes (Federal, State, FICA, Medicare, etc.).  All income and taxes are reflected in my W2.  There is no 1099-B for the RSU tax sale.  What gets entered into Turbo Tax other than the info on the W2? 

1. Do I need to show the sale of the shares withheld for taxes in the Turbotax Investment Income section or is this not required since it is already in the W2?

2. If it must be shown in the above section, Is the cost basis only for the shares sold to satisfy the taxes (in other words proceeds equal costs to cover taxes)?

[AmyC]

1. Yes. Since shares were sold, there should be a 1099-B. Since they don't have to be issued until Feb 15, you may not have received yours yet. The post office has 2 weeks to deliver them before you begin asking for another.

2. No. Careful, the cost basis is the Fair Market Value on the date the RSUs vest. Your box 1 compensation includes the vale at vesting for all shares. You will use the number of shares sold times the value at vesting.  Employees have the option of when the RSU is reported in their income. This makes you responsible for tracking your basis.  See Employee Compensation, RSU in Tax Cuts and Jobs Act: A comparison for large businesses and international taxpayers.

@IS5013  Also, my answer right above your post about the financial notebook is crucial to you to keep straight the shares, dates, and dollar amounts.

[IS5013]

I have all of the info on the fair market value, what was sold for taxes, etc. even though I don't have a 1099-B.  What exactly do I include step by step please for the below boxes.

1d Sales proceeds - is this only the shares that were sold for the taxes (179 vs. 437 released)??

1e Cost or other basis - Fair market value?

Box 4 Federal Taxes Paid - do enter the fed taxes paid even though it is on the W2 already?

Box 16 - same above question

TT is so very confusing on RSU's

[GeorgeM777]

If you did not sell your RSUs there is nothing to report.  Keep your records so that when you do sell your RSUs, you can refer back to these records when you prepare your return.

Assuming you sold your RSUs, Box 1d should contain the sale proceeds from the RSUs that you sold.  In other words, it should not include the number of shares that your company sold to cover your tax withholding obligations.  Referring to what you posted, if the company sold 179 shares to cover the taxes, and you sold 437 shares, then Box 1d should include the proceeds from the sale of the 437 shares.  

Now, for Box 1e, this can be tricky.  Box 1e contains your cost basis.  Your cost basis is the value of the shares on the day they vested with you.  By vesting we mean the day the RSUs belonged to you and you could sell them or hold them without restriction.  Because we are dealing with RSUs, you need to determine the price per share.  Based on your question it seems as if you know what the share price was on the day the RSUs vested with you.  Therefore, multiply the share price on the day the RSUs vested times the number of RSU shares.  That is your cost basis.  Don't include the number of RSU shares the company sold to cover your tax withholding obligation.  

Regarding the RSUs your company sold to cover your tax withholding obligation, that amount has already been included on your W-2.  Therefore, enter your W-2 information into TurboTax as it appears on your W-2.  W-2 information is entered into TurboTax online in the Income & Expenses section, or if you are using TurboTax cd/download, in the Wages & Income section. 

@IS5013

[IS5013]

Thank you.  You answered my question and was very clear in your explanation.

[jamie-d]

Disclaimer: I am not a tax professional.

TLDR: The easiest way I found to find adjusted cost basis with sales that have 0 in the cost basis, like RSU or ESPP, is to use supplemental information supplied by the stock broker. 

See if your bank or broker (or administrator) provides a supplemental document for your stock plan.  This will have more details about each transaction such as "adjusted cost basis"

I entered each sale manually and indicated that the sale was for RSU/Stock Plan using the prompts.

With this doc it was very easy to select "I need to adjust my cost basis" and then refer to the supplemental doc for each sale to enter the adjusted cost basis.

Probably a good idea to verify the numbers in the supplemental info with the calculations mentioned in above posts, but if you trust your broker's Information systems , and the supplemental info, using the form saved me a lot of time and headache.

[jshen95]

My RSU administrator sold shares to cover taxes as shares vested.  These sells do appear on the 1099B.  Since they are already accounted for in my W2 can I ignore these lines?  I imported the entire 1099B into Turbotax, so I would just delete them?