Reporting RSU

[S8NpTl]

In 2021 I have RSUs vested for 2021, and sold vested shares (vested before 2021) from previous years. In my 1099-B I see both the sell-to-cover transactions for 2021, and the transaction where I sold my vested shares (which were already taxed for income from 2020 and earlier).

In previous years where I only had STCs, entering the numbers through the RSU walk-through is straightforward enough. At the end the wizard asks me: 

In previous years it was no problem because the vested amount, the taxed amount are all reflected in my W-2 since I did not sell any shares except for the automatic STCs that covered the income taxes on these RSUs, and these were reflected correctly in my W-2 when the RSU administrator reported the numbers to my employer.

However since I sold my vested shares from 2020 and previous, these obviously wouldn't show in my 2021 W-2. But now since these got grouped into the same RSU grouping in Turbotax, if I don't select "yes" for "is this income included in wages" then my liabilities go way up, because I'm assuming the software is considering these were "not taxes for income", but this is not true since I paid the income taxes on these on previous years' when they vested. But if I do select "yes" the "computed value" doesn't match what's on my W-2, since obviously the previous-year-vested shares sale does not show up in my W-2 (which only includes the vestings in calendar 2021). Basically the lumping together of STCs during 2021 (which were reflected in W-2 2021) and sale of already vested (and income taxed) share in the Turbotax workflow is causing the issue. 

So what should I do in this case? Should I just report the previous-vested shares as a regular stock sale?

What's more puzzling is that the calculated refund changes by a couple of dollars depending on whether I select "is this an RSU" or no, which make no sense to me? These RSUs were vested from before 2021, and AFIAK these shares are no different than if I bought these shares my self, and given that my cost-basis/proceed and acquire/dispose date did not change why would this toggle change the final refund. 

All transactions were executed through the RSU administrator, so I got one 1099-B that just had header "my_company", then the transactions where named "unit 10", "unit 10", "unit 100"..., and I wonder if Turbotax  would let me enter the STCs, and the sale of vested share separately. I feel like in schedule D it should all work out, but given that Turbotax have whole bunch of RSU worksheets I'm not sure if this is the correct move.

[AmyC]

You have to adjust the basis to include previously taxed income. You do want them all reported as RSU. The 1099-B should list each transaction. Regardless of one or 100 transactions, the basis must be corrected to include wage income and any sales expenses. You can enter each transaction with the correct information. The STC should be a transaction on its own and can be entered separately.

The IRS puts this in the employee's hands to track their own basis. 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. This will protect you down the road as proof of your basis in your various investments. As you go through life, rollovers, RSU basis and sales, and more will be captured for you.

[S8NpTl]

Thanks for the answer!

To clarify your explanation with an example: in 2019 I had 100 units vested at $10. The STC was 30 units. So my 2019 W-2 reflects the $1000 income, and $300 paid income tax. I have 70 units remaining. So far so good.

Then in 2021 I had 200 units vested at $10. The STC was 60 units. So my 2021 W-2 reflects the $2000 income and $600 paid income tax.

In addition in 2021 I sold the 70 units left from my 2019 RSU, at $10. My 1099-B has two transactions:
60 units at $10, from the 2021 STC

70 units at $10, from the 2019 left over

The 60 STC has a $10 cost basis, since it was sold immediately at vest. Let's assume no transaction fee, so net $0 gain. 

The 70 units I sold at $10. Since the vest price was also $10 then no net gain, but then is the suggestion to include the 30 * $10 from the STC in 2019 in addition, as cost basis?

Overall I can understand the need to keep all documents. And if it's a matter of "can I track the RSU income and taxes paid" in previous years, and so that if I present all the W-2s from all relevant years to back up the income and tax paid as part of RSUs, then yes I can track them. However Turbotax seems to indicate it need my current year (2021) W-2 to be able to track against sales of previous year RSUs, which at least for my employer they don't do.