Reporting RSU Awards

[bcselin]

I received previous RSU awards which partially vested in 2024.  I had 32% of the shares "Sell Shares to cover".  On my 1099-B I see 2 transactions.  One for the "Sell Shares to Cover" and another one for the a separate sale of the shares.  I imported my data from Fidelity and it shows both transactions.  In the review of the transactions  I get the following questions:

Date Acquired:  I assume that this is the vesting date vs. the original grant day

Date Sold: Would be the date the "Sell Shares to Cover" occurred.

For the proceeds box would the value be $0 on the Sell Shares to Cover" transaction? 

Any help understanding this would be appreciated.

[KrisD15]

Date acquired is the date they vested. That is when the value of the stock which vested was added as income in Box 1 of your W-2. 

Yes, date sold is the date sold, the date sold to cover.

Proceeds should not have been zero, I'm sure they sold for SOMETHING

You may not have SEEN the money for the sales, but the sales resulted in revenue, and that revenue was withheld for federal taxes. 

It wasn't profit for you because whatever they sold for was also part of your wages reported in Box 1. 

What you want to do is report NO GAIN and the way you do that is to report your basis as the same as the sale proceeds for those stocks. (it could be slightly different which could result in a small gain or loss) 

So if 100 shares vested  and 32% were sold to cover, 32 shares were sold. 

If each share was worth $10, you had 1,000 added to your W-2 as wage income.

Your basis for each share is $10.

If 32 shares sold for $320, but your basis was 320, there was no gain. 

[bcselin]

Thank you for the reply but I am still a bit confused.  After my information is imported from the financial institution I am asked to review the transactions/sales in TurboTax.  For the sale related to "Sell Shares to Cover" is this how I should enter the data?

For the other transaction I made not related to the "Sell Shares to Cover" I believe in TurboTax the entry should look like below.

Do I have this correct or am I wrong in how to report it in Turbo Tax?

Thanks so much for the help.

Brent

[ThomasM125]

I can't see your second image, but the first one looks reasonable, as the sale price and cost would be approximately the same, assuming the shares were sold immediately upon vesting. You can calculate the cost of shares sold more precisely by taking the discount as reported on your W-2 form and dividing it by the number of shares that vested. If you didn't pay anything for the units, that would give you the cost per share. You could then multiply that by the number of shares sold to determine the cost of the shares sold.

[bcselin]

Thanks for the input.  Which box on my on my W-2 form?  The one thing I am still confused about is if the original shares when they vest are included in the income reported on my W-2 and I just need to report the Gain/Loss of the shares based on the difference between grant price vs. sale price.  Is my example below the way I should treat them when I enter into TurboTax or should the total sale price be entered as the Gain/Loss of the sale?

Vesting Date	Shares	Sale Date	Grant Price	Sale Price	Total Sale Price	Gain/Loss	Gain/Loss
3/31/2024	32	4/2/2024	$            25.00	$            30.00	$            960.00	$         160.00	Sell to Cover
3/31/2024	68	9/2/2024	$            25.00	$            40.00	$        2,720.00	$      1,020.00	Regular Sale

[ThomasM125]

Yes, that all looks good. The ordinary income reported in your W-2 form would be mentioned in box 12 or 14. It should have an abbreviation that references the stock. 

[bcselin]

Thank you.  This is making more sense now.  In Box 14 on W2 I have a RESTOCK dollar value.  So on my taxes I only need to claim the Gain/Loss of selling the shares as the initial value of the vesting of the shares is already included in my W-2.  

Thank you again for time and the answers.

[ThomasM125]

Yes, exactly, you are taxed on the value of the shares that are given to, then again when you sell them if you sell them for more than what the initial value was.