Turbotax incorrectly calculated gain/loss on RSU lot where all were sold to cover taxes

[sjacob]

I have a 1099-B from Fidelity for RSU vests in 2021. There are 4 lots. I imported the 1099-B from Fidelity and left the box 1e cost basis as $0 (as one is meant to, even though there is an adjusted cost basis on a separate form -- I really wish Fidelity would just include the value in box 1e, not on a supplemental form!).

For all four lots, I then went through the TurboTax interview process, designating them as RSUs, and entering the number of shares vested, the number sold to cover taxes, and the market value on vest date derived from the "2021 Supplemental Information" from Fidelity, which shows "Adjusted Cost or Other Basis" with real values.

For 3 of the lots, it correctly shows a capital gain of about -$10 or -$11 (correct).

For 1 of the lots, where I only received _1_ RSU, the 1 RSU was sold to cover taxes. Just for that lot, TurboTax incorrectly shows a gain of the sale price (even though the market value at vest was about $10 more than the sale price). It should show -$10. Instead it shows +$BigNumber for that lot.

It looks like TurboTax has a bug when calculating this if you receive a share and the single share is sold to cover taxes.

I guess it's probably too much to hope for an update to fix this bug, and that I probably just need to go in and modify the tax forms? 😕

- Stephen

[DavidD66 · Accepted solution]

When reporting the sale of RSUs, if you have all the information need to report the trade (e.g. correct cost basis) and the value at vesting was added to your W-2, there is no need to answer Yes to the question "Is this employee stock?  You can just skip that interview section and enter your 1099-B, and then enter a cost basis adjustment.

[sjacob]

Thanks, @DavidD66. I did that, and it worked.

I do think the failure to calculate it properly for the 1 RSU vested, with the single RSU sold to cover taxes was a bug, however, so please could you report that to the appropriate team to fix it?

Thanks!

- Stephen