I have RSUs that vested and my employer sold a portion to cover taxes. I sold the remaining shares. TurboTax is doubling the number reported on my W-2. How do I fix this?

[j2d2019]

The Employee Stock Plan Results page in TurboTax shows exactly double the RSU amount reported in box 14 of my W-2. I received 2 separate 1099-B statements for 2018 - one has the sell-to-cover transactions and the other has my sales of the retained shares. I followed the "guide me" approach in TT and entered all the details from the broker statements. I don't understand why TT is doubling the amount or how to fix it.

[TomYoung · Accepted solution]

First, understand that there's no "income tax return reporting" requirement that means that you must use the RSU "guide me" interview.  So one fix here would be to delete the trades you've entered and then use the default TurboTax 1099-B interview and enter the trades again, simply correcting the "$0" basis to the correct basis.  To do that enter each trade exactly as it reads on the 1099-B then click on the "I'll enter additional info on my own" blue button.  On the next page enter the correct basis in the "Corrected cost basis" box.  The correct basis is (number of shares sold) x (per share "fair market value" used by the employer to calculate the compensation associated with the RSU vesting)

TurboTax will report the sale on Form 8949 "as reported by the broker" but will put an adjustment figure into column (g) of the Form, a code "B" into column (f) of the Form, and the correct amount of gain or loss which includes the adjustment.

If you really want to use the RSU "guide me" interview then the mistake you've made here is that you've told TurboTax about the same vesting twice and TurboTax doesn't "know" that.  So it calculates exactly twice the amount of compensation as shown on your W-2.  To fix that, break the vesting into two parts, one for the shares sold for taxes and one for your share.  That way TurboTax has the correct number of shares to work with to calculate the compensation.  Be sure to leave the "shares sold or withheld for taxes" box blank for both sales.

Tom Young

[j2d2019]

Thank you - appreciate your help!

[j2d2019]

I re-entered all of the 1099-B information and added the corrected cost basis. Now the Employee Stock Plan Results page in TurboTax computes 0 as the amount on my W-2, which is incorrect. How did I go from doubling the value to 0?

[TomYoung]

You simply DO NOT have to use the RSU "guide me" interview except in two situations:
   1.  The compensation was not reported on your W-2
   2.  You have no idea what your basis is or how to determine it.

Neither situation exists here so entering the sale without using the "guide me" process and correcting the basis reported on the 1099-B gets you right with the world.

I don't know why you're seeing that Employee Stock Plan Results page if you deleted the trade you entered using the "guide me" process, but I do know that TurboTax, sometimes, seems to get "sticky" and hold on to remnants of information so maybe that's why you're still seeing the page.  

But clearly at this point that page is correct: i.e., TurboTax has CALCULATED $0 compensation on the RSU vesting because from TurboTax's standpoint the vesting DOESN'T exist.  That page in ONLY THERE to correct the error noted as item 1. above.  It's not there as some kind of "proof" to the IRS that the compensation reported on the W-2 is somehow "correct."

Look at your wages and salary line on your Form 1040 and see that it agrees with your W-2.  At this point it shouldn't really matter if you answer "Yes" or "No" the the question on that page; answer anyway you want and then go back and look at your wages and salary line and it should be unchanged.

(Closing down TurboTax and re-opening the income tax return might result in that page disappearing completely.)

[j2d2019]

Thanks again. The page does stick even after closing and reopening TurboTax. However, the wages on Form 1040 look correct. Just to confirm - there's no need to follow the Guide Me approach and enter the vesting/release information which includes # shares released, # shares traded to pay taxes, market price per share, and amount I paid per share? Skip this altogether?

[TomYoung]

YES!  Since you're using a desktop version of TurboTax you should be able to go into Forms Mode and delete the worksheet where that's coming from, or not.  It just isn't affecting anything, obviously.

[wprestrud]

You still need to fill out the guide me info.  Just make everything correct by adjusting it if necessary.  It says in that section it is ok to adjust to make it what you know are the correct amounts.  RSUs are not received by folks very often.  I had to always fool around with it every year that I got them.

[wprestrud]

Did you see the note of the person that said there were only 2 instances where you had to fill out the guide me to see if they apply to you.  Take a look at that, before we try to figure out how to fix it.

[TomYoung]

@wprestrud

I'm the person that added that note, and neither apply to the Original Poster.  I would guess that 99.97% of people that have RSUs vest DON'T need to use that interview as they 1) have the compensation included on their W-2 and 2) know, or should know their basis as so many brokers send that info along with the Form 1099-B.

[wprestrud]

You should put 1/2 the RSU amount on each 1099-B transaction.  Normally this transaction is sent on one 1099-B as it is really only one transaction.  During the sale of the stock some of the stock is withheld to pay for the tax.

[j2d2019]

I sold my retained shares on a later date, so I think that's why I have one transaction for the shares sold to cover taxes and another when I sold the remaining shares. TT prompts me to enter the number of shares released and the number sold to cover taxes, and suggests that my cost per share is 0.