Re: "How do I know how much tax (fed vs state) was...
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veronicadmorgan
New Member

My stock vested and was immediately sold. I used sell-to-cover to pay taxes at vest. My W2 reports all stock sold as income. How do I show I sold stock to cover taxes?

Seeing as ETrade has retained/sold RSU stocks to pay for taxes when I vested, but my W2 reports all sold stocks (even those for taxes) as income, how do I or where do I put the data into TurboTax that reflects the fact that I already paid taxes on my RSUs? How do I know how much tax (fed vs state) was paid by ETrade when they don't provide any kind of breakdown in a 1099B or otherwise? Just FYI, atleast the federal taxes paid on the RSUs is not reflected in my W2 - the tax amount is far to low for that (almost half what it should be).
2 Replies
TomYoung
Level 12

My stock vested and was immediately sold. I used sell-to-cover to pay taxes at vest. My W2 reports all stock sold as income. How do I show I sold stock to cover taxes?

"How do I know how much tax (fed vs state) was paid by ETrade when they don't provide any kind of breakdown in a 1099B or otherwise? Just FYI, atleast the federal taxes paid on the RSUs is not reflected in my W2 - the tax amount is far to low for that (almost half what it should be)."

IF Etrade actually withheld taxes and paid them to the government(s) THEN those amounts would be reported to you on the 1099-B, and I expect they are not.  But if those amounts are on the 1099-B then you report those amounts when you process the sale through TT; click the blue "additional info" button to get those boxes to show up.  The cash raised by the sale of stock "for taxes" typically gets passed back to the employer, who pays the government(s) and includes those amounts in the "taxes" boxes of the W-2.  You need to talk to the payroll department if you think that that the amounts are not correct and are not reported on the 1099-B.

Actually, the W-2 is NOT reporting "all stocks sold" as income.  If you had not sold a single share of the stock your W-2 would look exactly the same as it does because it's the vesting of the RSU that creates compensation income, not the sale of the stocks.

You basis in ALL THE STOCKS that vested is the same as the compensation income created.

Tom Young

magonz0
New Member

My stock vested and was immediately sold. I used sell-to-cover to pay taxes at vest. My W2 reports all stock sold as income. How do I show I sold stock to cover taxes?

Okay but what about on the brokerage account statement where it breaks down tax detail for the sale of RSUs.

It states Tax due and tax paid. How do you report if the tax paid line is higher than the tax due?

It is not recorded on the 1099-B, nor anywhere other than these sales statements.

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