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RSUs and Adjusted Cost Basis

My husband receives RSUs from his company. In 2020, we sold more of that stock than we normally do. When I was filing our taxes, I came upon the question/flags about entering my Adjusted Cost Basis for each sale. I do not ever recall getting this prompt in the past. 

 

I pulled out the ETrade records and started entering the Adjusted Cost Basis (the Cost Basis had been recorded as $0.00. With each entry, my liability decreased dramatically. When I was done, I owed 79% less than when I started. In an excited panic, I hurried to purchase the larger TT support package. And then I just filed-- which meant that I am no longer eligible for the help I had just paid for. So here I am-- asking the community-- did I totally screw up or did I do it correctly? 

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3 Replies

RSUs and Adjusted Cost Basis

Probably best if you provided additional information / clarifications:

  • Have you already filed your tax return?
  • Did you use "0" as the cost basis?
  • Do you understand your actual cost basis?  This should have been included in your husband's W-2 in the year the units vested.
  • How long were the units held?
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

RSUs and Adjusted Cost Basis

Hi Rick,

Thank you for replying! 

 

Here is more information:

  • Have you already filed your tax return?
    • Yes-- I totally jumped the gun 😬
  • Did you use "0" as the cost basis?
    • Yes and then when prompted to find and enter the adjusted cost basis, I did that.
  • Do you understand your actual cost basis?  This should have been included in your husband's W-2 in the year the units vested. 
    • The cost basis on all on ETrade shows as $0.00
  • How long were the units held?
    • All of these were acquired and sold in 2020

 

RSUs and Adjusted Cost Basis

I'm not sure if this detail is useful, but the numbers in these 2 columns matched: Adjustment Amount (Ordinary Income) &  Adjusted Cost Basis.

 

I appreciate any more feedback that you have and am fully aware that the feedback is anecdotal and not professional consultation. 

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