Should I use Release Confirmation details on both 1099s imported for sale of RSUs or only the form for the Sell-to-cover taxes, the 2nd 1099 is for $ actually received?

[Candraw]

I am very confused concerning my 1099b forms from a single sell of vested RSUs.  I have two separate 1099b's, one seems to be the sale to cover the taxes and the second form is the sale of the amount I actually received.  I only have 1 Release Confirmation and 1 Year End Stock Plan Summary to reference for Cost Basis details.  (Morgan Stanley - single release date, single award date, single vest date, single sold date, all same on both 1099s)

[TomYoung]

You report both 1099-Bs.  The second those shares became yours only "you" could sell them, even if the sale of stock "for taxes" happened pretty much automatically.

I don't know what the Release Confirmation or the Year End Stock Plan Summary is telling you but I can tell you what your "per share" basis in the stocks is: it's the same as the per share "fair market value" used by your employer to calculate the compensation reported on the W-2 for the vesting.  That is:

       (GROSS number of shares vesting) x (per share "fair market value) = Compensation reported on W-2

Presumably understanding that and looking at the two statements you've referred to will be sufficient for you to properly report the basis of the stock sold in each sale.

Using the "Stocks, Mutual Funds, Bonds, Other" interview enter each 1099-B exactly as it reads.  Then click on the "I'll enter additional info on my own" blue button.  On the next page enter the correct basis in the "Corrected cost basis" box.  The correct basis is (number of shares sold) x (per share "fair market value" used by your employer).

TurboTax will report the sale on Form 8949 "as reported by the broker" but will put an adjustment figure into column (g) of the Form, a code "B" into column (f) of the Form, and the correct amount of gain or loss which includes the adjustment.

A typical "same day" sale, (vesting/sale occurring pretty much simultaneously) results in a small loss due to selling commissions and fees, though if the selling price isn't exactly the same as the "fair market value" used you may have a somewhat larger loss, or even a small gain.

Tom Young

[Candraw]

The question comes into play on the screen for "Enter Vesting or Release Information" where I am having to enter the same details for both 1099b forms.

Total there was 7.00 shares, 3.00 I got, 4.00 were retained and were sold to pay taxes for the shares I actually got paid for.  If I enter the same details for both 1099's on this screen I end up with a pretty large gain for the sale that was used to pay taxes.  That doesn't seem right how is it a gain on sale of shares I received NO money for and that were used to pay taxes on the 3.00 shares I did receive money for?

[TomYoung]

You are using the "RSU" "Guide me" process to enter your sales.  DON'T do that.  There's absolutely NO "income tax reporting" reason to do so.

DO YOU know what the correct per-share basis is for the 7 stocks that vested?

If you do, then delete those trades those two trades; don't attempt to "edit" them, delete them.  The enter to two trades exactly as I've described above.  If the two sales were "same day" sales then the most common outcome for a same day sale is a small loss due to selling commissions and fees.  If you happened to sell the shares for less than the "per share fair market value" then you'd expect a slightly larger loss.  If you happened to sell the shares for more than the "per share fair market value" then you might even have a slight gain.