Entering detailed RSU info in 1099 section

[TomYoung]

IT DOES NOT.  That's not part of your income tax return.  That's a worksheet for your records.

[purplebun]

WOO HOO! thank you so much Tom! You're explanations are really helpful 🙂 Just wish TT was more intuitive.

[amyaudetat]

Tom, you are a 1099-B hero. In prior years, you suggest people skip the guided part of the form. For TY 2028, I can't figure out how to skip it. I know all the inputs, and if I could directly enter on the form, I would. Instead, I'm guessing at what the interview is trying to get at and then checking the output on my form - which is wrong, and checking is time consuming since TT doesn't have an easy way to check the 1040. Is there a way to skip the interview this year?

 Thanks!
Amy

[zainahaider510]

Hi Tom,

I didn't sell any RSUs in 2018 but I had RSUs that vested in 2018. Is there any reporting to be done in the year that the RSUs vest?

I understand that when we sell your RSUs, we need to have the right sale price and cost basis to come to the capital gain and loss.  I sold them all in 2019 so I will do the appropriate reporting for the year of 2019.

Thanks.

[Nsawhney12]

Hi Tom,

Looking for some help. I followed your directions (atleast I think I did), and entered the RSU as regular stock sale. Entered the value as shown on 1099-B for date acquired / sold, sale price and cost basis. Then I corrected the cost basis and added the cost basis as # of share sold * stock price on day of sale. When I did this, TurboTax shows that it calculated the W2 as $0, and asks to confirm that this is reported in Box 1 of W2. On my W2, I do have a non.zero RSU number on box 14. 
Am I doing anything wrong? Or should I just ignore the fact that TurboTax thinks my W2 RSU shows as $0?

thanks

[Glenn M]

Tom,

You're my hero! Just happened to come across this thread struggling to get my taxes done in time.

Never had a problem in the past, but for some reason, this year the RSUs are really tripping me up, and I can't figure out where I'm going wrong.

Problem solved! Thanks!

[JimH-Seattle]

Hi All,

Similar problems for me with RSU's this year.  I have thirteen different vests to enter and I've tried to do it with the step-by-step. Everything is fine until lucky thirteen.  The cost basis for this vest is within $15 of the proceeds listed on the 1099.  For some reason when I enter it, exactly the same as the others, the tax owed jumps by several thousand dollars.  If I enter it as a plain stock sale and don't worry about the RSU part (saying 'No' on the screen that asks 'Was this a sale of employee stock?') it works fine.  It's almost acting like there is some type of limit on the RSUs or that it's somehow comparing it to W-2 data and is exceeding that.  I want to take Tom's advice and just enter them all as non-employee stock sales but I'm worried about how that shows up.  Does it only effect the worksheets and doesn't matter for the actual return?  The only sales on the 1099 are those used for tax witholding and all are included in the W-2.  

Any help would be much appreciated.  -Jim

[RobertB4444]

It's adding the basis to your income.  Go ahead and enter it as a non-employee stock sale.

[JimH-Seattle]

thanks, I appreciate the guidance.

[Attyisler]

What a wonderful thoughtful answer! I appreciate it and you!

[almargahi]

After extensive research, I now found your responses to make more sense. Lord, there are so many people who will exaggerate and scare the crap out of you but in the end, form 8949 is simple and that is the only one sent to the IRS. Now I just need to absolutely make sure I am following you when you say it is not necessary to follow the RSU step-by-step interview questions. To me, on my TT Premier Windows version, the only way the above interview comes up is by selecting 'Yes' to the question 'Was this a sale of employee stock'. Now, at a quick glance, you'd say yes it was but if you do No, it takes you to another screen with less common items, where you will put the 'Corrected cost basis'. So, in short, I did not do the step-by-step RSU questions by selecting No to the question above, since IRS does not care as long as I am reporting the correct cost basis, is that all correct? 

[AmyC]

If you received the RSU, the income went on your w2 and you keep a copy of the w2 showing the extra income until all the RSU is sold. You report the RSU when sold. You will receive a 1099-B and you must adjust the cost basis to reflect the income already received. This income goes on the 8949 and flows to sch D. As long as you have the correct dollars being reported over the correct time period, long or short, your answers are fine.

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 purchase until sold or loss used plus 3 years.

See:

• About Form 8949, Sales and Other Dispositions of Capital Assets
• What are restricted stock units (RSUs) and how do I report them?

@almargahi 

[gb1]

Cost Basis is 0 for sell-to-cover in my 1099-B

Should this be adjusted manually to equal the Proceeds?

Even if I delete the import & manually enter, I still have the same issue, which is "What is the cost basis?"

I didn't sell any, they were sold to withhold taxes (all proceeds went to IRS and I presume my W2 box 2 includes this total proceeds). By reporting this as gain with cost basis 0 - makes it look like you are paying taxes for tax.

Thanks in advance.

[RobertB4444]

The cost basis is based on what you paid for what you sold.  You should consult with the broker to get a more accurate basis if you think the zero is wrong. 

But when you sell stocks in order to pay taxes unless you sell something at a zero gain then you will indeed be taxed on the sale in order to make the cash to pay the taxes.

@gb1