Total RSU Amount on W2 vs RSU amount computed by Turbo Tax ( Desktop) is different

[Datta]

I have scenario where I got 20 quantities Vested this year ( Say for total 100$ vested). W2 shows $ 100 gain

I have 2 lines in 1099 B

Line 1- Tax withheld and sold at the time of vesting ( Qty 8 - $40)

Line 2- I sold vested RSU within same year (Qty 12 - $60)

When I enter each line details, it asks for extra information like Total share vested, Total share withheld etc

At the end of summary it gives me Employee stock plan results but there it shows RSU amount computed as $200. It seems to be software bug when vesting and sell happen in same year because as I entered 2 lines 

Is there workaround for this issue ? Would it double count total RSU amount ?

[DavidD66]

RSUs are pretty straight forward; therefore, I recommend you enter your transactions without indicating you are reporting the sale of company stock.  When RSUs vest (the stock is delivered) the entire amount is ordinary income.  Your employer must collect payroll taxes, or sell shares to pay it.  Since you are taxed on the entire amount, you basis is the amount that is added to your W-2 which you are taxed on.  If you retain the stock, any gains on the sale will be short term if you hold the stock one year or less, and long term if you hold it more than one year.

You will have two transactions.  The cost basis (per share) and acquisition date will be the same for both transactions, and they will both be short term.  The proceeds and sales date will be whatever is reported on the 1099-B.

[RichTR1]

I have the same issue however imported 1099 from Morgan Stanley with RSUs in there. I walked through each RSU sale and corrected the cost basis (etc.) after entering all the data TurboT shows a page of "Your Employee Stock Plan Results". It states "Amount We Computed" was $88K however the total value of my RSU's was about $33K. Then it ask "Is this income included in wages? If I answer "YES" (even though it is incorrect) the tax due is fine as my RSUs were sold at an actual loss from the Market Value of the shares at time of release. However, if I answer "No" my tax due goes up by $22K. My W-2 includes the $33K of RSUs in my Gross Pay. However where is Turbo tax coming up with this $88K Computed value? THIS IS A BUG AN NEEDS TO BE FIXED! My work around plan is to just answer "YES" and move on.

[GeorgeM777]

Perhaps the reason why the total value of your RSUs is so inflated could be that your per share market price is incorrect.  The per share market price is entered from the screen Enter Vesting (or Release) Information.  So you might consider going back to that screen and reviewing your entries.

In the alternative, as it appears you know all of the relevant information about your RSUs, you might consider entering the RSUs as you would a regular stock transaction.  Thus, the vesting date would be your purchase date, and the per share market price on the vesting date would be your per share cost basis.   Usually, but not always, the market price for the RSUs that were sold to cover the tax withholding, is also the market price for your RSUs when determining the cost basis.  

There is no need to be concerned with reporting the RSUs as compensation income, and neither the tax withholding, as such amounts should have already been reported on your W-2.  

@RichTR1 

[RichTR1]

I checked the per share market price on the Enter Vesting (or Release) Information screen and the correct market prices are in there. The gross proceeds screen shows a little over $22K. I do not know how Turbo Tax can possibly compute roughly $88K for compensation price. 

I will just report the (remaining RSU) share sales  (after my company deducted shares for taxes when released) as ordinary transactions and not call them RSU's per your advice. Still would like to know why TT came up with such a large number above even the total value of all shares (including share withheld for tax) in their calculation.

[Hogstrom]

I would as well.  Although Turbo Tax is saying the "Amount We Computed:" as $3,240,794,705.00.    Although that sounds like a good problem to have we're off by several magnitudes.   Can this be fixed or tracked down in a worksheet perhaps?

I reviewed each transaction and the share price, number of shares, etc are all correct.

[GeorgeM777]

Given the results you are seeing, perhaps the best option at this point is to enter your RSU transaction information as if you were reporting a regular stock transaction.  Just an fyi, your per share cost basis does not change despite the employer selling some of your RSUs to cover their tax withholding obligations.  In other words, you calculate your per share cost basis based on the total number of RSUs that vested which includes those that were sold to cover and those that remained in your account which you later sold.  

@Hogstrom 

[Hogstrom]

I guess I'll have to do that but it would seem that its double the effort for something that should just work.  I feel that the TT team should be aware of this and fix it or remove the ability to enter this information at all.  It's been a waste of time to do a rework because of some internal bug

[RichTR1]

Since I imported my RSU sales from Morgan Stanley I am getting some errors where I am breaking the checking mechanism in Turbo tax when I delete all these imported transactions and try to enter them individually without claiming them at Employee Stock sales. Should I just start over and not import from my broker? I did not have many other transactions so it would not be the end of the world but more of a hassle to enter them as regular stock transitions.

I may just start a new return to make it clean and have turbo tax not freakout and give me a bunch of errors.

[RichTR1]

What I mean by start over is create a new return in turbo tax...

[Hogstrom]

I'm wondering it if makes a difference to simply answer yes to the question is this value on the W-2.  If I answer yes then everything looks good.  Any experience on that approach for RSUs 

[RichTR1]

Also I am finding other errors (when you run the Fed  Smart Check) with the RSU worksheet on Turbo tax where it was saying the Vested date on the RSU worksheet was later than the sale date (but they were not). The RSU Section of Turbo tax is really messed up.