RSU sold as "sell to cover" taxes but I have not sold the balance. Do I need to use 1099B for taxes?

[shahsanketd]

I have RSUs vested through out 2016 and there were some sold "sell to cover" taxes. However, I have not sold any of the balance RSUs. Do I need to use 1099 B which is issued by Etrade or no action needed?

[TomYoung]

If you got a 1099-B then you must enter it.  1099-B's report "sales" and entering security sales simply isn't "optional."

If you use the correct basis you won't "double report" income.  The correct per share basis for each lot of shares that vested is the compensation income created by the vesting divided by the GROSS number of shares that vested.

Enter each sale on the 1099-B exactly as it reads and then click the blue "I'll enter additional info on my own" button.  On the next page enter the correct basis in the "Corrected cost basis" box.  The correct basis is: (# of shares sold) x (per share basis for that lot.)

The typical "same day" sale results in a small loss due to selling commissions and fees.

Tom Young

(SINCE THE DEVELOPERS CHANGE THE SECURITY SALE INTERVIEW EVERY SINGLE YEAR I'LL NOTE THAT THIS ANSWER'S DIRECTIONS ON HOW TO CORRECT THE BASIS FOR THE SALE PERTAINS TO THE 2016 INCOME TAX YEAR.  I'M SURE THAT THE INTERVIEW WILL CHANGE IN THE YEARS AFTER THAT.

[shahsanketd]

Hi Tom, thanks for your response. I am still little confuse. Let me give you exact scenario to explain my question please . I had 7 stocks vested last year (at zero cost to me) on 5th march at a market value of $201 (total of $1407). After two days, my employer sold 4 stocks at a rate of $197.60 to cover taxes. Now I have 3 stocks left which I have not sold yet. what would be my cost basis in that case? Also what will be my date of acquired and date of sell? I am sorry I am new to RSUs and very thankful to your help.

[TomYoung]

Your employer apparently used $201 x 7 to calculate the compensation - check your W-2 - so that's your per share basis.  Clearly you're going to have a small loss on the sale.  You acquired then on the vesting date.  The sale date should be on the 1099-B which I'd think would be 3/7.

[shahsanketd]

Hi Tom, I confirmed that my employer used $201 to calculate the compensation. Can you please help me figure out the accurate information for following fields, please? when I import my 1099 B to turbo tax website, box 1 B (sale proceeds) is automatically filled with $592.80 ( I think that is 3 remaining stocks at $197). I need help to fill out box 1e (cost or other basis) for this case. Unfortunately, that number is not showing up automatically by importing 1099-B. THANK YOU VERY MUCH!

[TomYoung]

3 x $201