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rosewq
New Member

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

My RSUs were sold in 2016. When I look at the brokerage transaction details, it shows federal, state taxes were already withheld. So I received a check for the total amount minus taxes. But the 1099B I received from the brokerage shows only the gross amount of the transaction and the federal/state tax boxes show 0. 

Also, on my W2, a slightly lesser amount is given with code V in box 12B, than what is reported on 1099B.

How do I report this on my tax return in TurboTax?

1 Best answer

Accepted Solutions
TomYoung
Level 13

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

As to your question "how to report this (federal, state taxes) in TurboTax?" the answer is "you don't because it's already been reported on your W-2."  You had a "same day" sale of stock (vesting/sale on same day) "for taxes" and that cash was passed back the the employer, who paid the government(s) and included those amount in the various "taxes" boxes on your W-2.  You can check with your payroll department. 

If the broker had withheld and paid the taxes - called backup withholding either because you didn't submit a W-9 or did submit a W-9 and said you were subject to backup withholding - it would be on your 1099-B.

"Also, on my W2, a slightly lesser amount is given with code V in box 12B, than what is reported on 1099B."

I assume what you are saying here is that the proceeds on the 1099-B is greater than the dollar amount of the W-2.  All that means is your employer used a slightly smaller per share "fair market value" (and reported slightly less compensation income) than you actually realized when you sold and it's no big deal.  Forget about it.  You'll use the Box 12 amount to determine the basis for the sale and realize a slightly higher short term capital gain.  Trying to get it "corrected" amounts to pushing small numbers between "compensation" and "short term capital gain" both of which get taxed at the same tax rate.

Tom Young

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9 Replies
TomYoung
Level 13

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

As to your question "how to report this (federal, state taxes) in TurboTax?" the answer is "you don't because it's already been reported on your W-2."  You had a "same day" sale of stock (vesting/sale on same day) "for taxes" and that cash was passed back the the employer, who paid the government(s) and included those amount in the various "taxes" boxes on your W-2.  You can check with your payroll department. 

If the broker had withheld and paid the taxes - called backup withholding either because you didn't submit a W-9 or did submit a W-9 and said you were subject to backup withholding - it would be on your 1099-B.

"Also, on my W2, a slightly lesser amount is given with code V in box 12B, than what is reported on 1099B."

I assume what you are saying here is that the proceeds on the 1099-B is greater than the dollar amount of the W-2.  All that means is your employer used a slightly smaller per share "fair market value" (and reported slightly less compensation income) than you actually realized when you sold and it's no big deal.  Forget about it.  You'll use the Box 12 amount to determine the basis for the sale and realize a slightly higher short term capital gain.  Trying to get it "corrected" amounts to pushing small numbers between "compensation" and "short term capital gain" both of which get taxed at the same tax rate.

Tom Young

View solution in original post

tstaup
Returning Member

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

Thank you Tom, I had the same question about my 1099. Being as the taxes were already withheld on my w-2, do I need to even report the 1099? I am afraid the IRS will see that and want more money!

TomYoung
Level 13

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

If you got a 1099-B you do need to report the sale.  If you don't the IRS will ask about it at some point.

 

A typical "same day" sale will result in a small reported loss due to selling commissions and fees.

jaeheec7
Returning Member

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

Hi Tom, 

 

I'm in a similar situation. I've participated in a tender offer from a previous employer. I've received both a W2 (With the amount withheld in Box V) form and a 1099B form. The 1099B does not reflect the taxes withheld. If I enter both documents into Turbotax, I I owe a lot of money (I feel like I'm being double taxed here). Am I doing something wrong? 

TomYoung
Level 13

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

@jaeheec7 

 

Yes, you are doing something wrong.  Namely, you're using the wrong basis, probably the basis being reported by the broker.  The taxes withheld not showing on the 1099-B are irrelevant here.  They are on the W-2, presumably, and you can't declare them again.

 

If this was a NQSO - suggested by the "V" code - then your basis per share is the per share exercise price + the per share compensation created by the exercise.  (That is Compensation = GROSS number of shares acquired x per share "fair market value" used by the employer.)

 

I'd expect you will report a small loss due to selling commissions and fees.

Bigbecky70
New Member

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

Where on the W2 are the taxes reported for the stock sale? Because I don't believe it's added in to the total fed tax withholding. 

TomYoung
Level 13

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

@Bigbecky70

 

The taxes paid to the various taxing authorities are scattered around the various "taxes" boxes of the W-2.  They are not separately disclosed to you.  Check with your payroll department.

 

If the broker actually withheld the taxes they would be on the 1099-B.

 

If your taxes go way up when you enter the sale the you're using the wrong basis.

knrichie
New Member

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

I understand the income and taxes are both reported on the W2. But if I recieved a 1099-B, do I need to also report that in TurboTax? I have the same issue with a same day sale and no taxes reported on my 1099-B which makes my return jump pretty high to the negative. 

AmyC
Employee Tax Expert

The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

Report the 1099B. The basis on the 1099B is either missing or probably wrong. The correct basis is the amount of money that was added to your W2 as wages plus any brokerage fees to buy/sell.

 

You used the word taxes for 1099B and I think you meant basis. If you enter the numbers for a sale that is on your W2 and 1099, it should be pretty close, maybe even a small loss. A big jump in what you owe sounds like the wrong 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, 5498, and any 8606.

 

This will protect you down the road as proof of your basis in your various investments. As you go through life, rollovers, ESPP & RSU sales, and more will be captured for you. 

 

When you do sell, your notebook will be invaluable with knowing what was first, the order, the basis, and the lot size for stocks.

 

 

@knrichie

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