I had a number of RSU's vest in 2016 and have not received a 1099 from my broker. 1/3 of the RSU's were withheld to settle taxes. How do I report this RSU income?

[stout-david-e]

I had a number of RSU's vest in 2016.  I have not received a 1099 for these from my broker.  My broker informs me that about 1/3 of the RSU's were withheld to settle taxes, and I can see that on my broker statement.  How do I report this RSU income in TurboTax without getting double taxed?

Step by step information would be most appreciated.

[DDollar · Accepted solution]

You will need your 1099-B in order to report the transactions.  Depending on who your broker/dealer is, you may be able to access your Form 1099-B online.  The ordinary income portion of your transaction is reported on your W-2.  You will have to enter the 1099-B to account for any capital gain or loss as well as adjust the cost basis to reflect the amount reported on your W-2.  To enter your 1099-B, go to:

• Federal Taxes
• Wages & Income
• Investment Income
• Stocks, Mutual Funds, Bonds, Other
• Answer Yes you received a 1099-B
• Do not enter your broker-dealer name and download your 1099-B, instead,
• Click on "I'll type it in myself"
• Enter your Broker and click Continue
• Indicate the type of trades you have on your 1099-B (A, B, D, E, X)
• Enter the details of your transactions as reported on your 1099-B THEN
• Check the Box for "This sale involves an employee stock plan (including ESPP) or an uncommon situation".  Additional information will appear.  Click on Start Now
• Indicate "I have sales from an Employee Stock Plan, including ESPP, NQSO, ISO, RS, and RSU"
• Follow the instructions for the type of employee stock plan you have.  Additional information on these plans is available by clicking the blue Learn More link
  

[TomYoung]

You might not get a 1099-B as brokers aren't required to prepare them for "same day" sales.  They do have to prepare though some sort of "statement" with the same information.

If you don't get a 1099-B then you don't have to report the sales.  You might want to report the sales anyway as most same day sales result in a small loss due to selling commissions and fees.  You can do that by using the "Stocks, Mutual Funds, Bonds, Other" interview and telling TurboTax that you didn't get a 1099-B.  You can use the RSU step by step process if you wish, but if you know the per share basis to use, that being the per share "fair market value" used by your employer to calculate the compensation for each lot, then it's easier to simply sell plain "Stock", tell TurboTax you "bought" the stock one time and the per share "purchase price" of the stock is that same per share fair market value used for that lot.

Tom Young