How do I report Adjusted Cost Basis?

[bakshi6]

In 2017, I received an award of RSU and my employer selected the option to sell to cover. 399 units vested on 4/15/2018. My employer uses eTrade to manage awards. 

For my 2018 taxes, TurboTax imported my 2018 form 1099-B from eTrade (see below data) for vesting transaction but I think I may have made an error by entering a zero (0) in the field for "Cost or other basis" (box 1e). The 1099-B form listed proceeds of $1,037.44 and a zero (0) under "Cost or Other Basis". eTrade's Supplement  statement (which has more data about the sale, see below data) also lists a Cost Basis of zero (0) but there is an "Adjusted Cost Basis" column which lists $1,029.00.

I already filed, but I clicked the amend button and tried to change the amount in the "Cost or other basis" (box 1e) in TurboTax from zero (0) to $1,029.00 and it shows that I'm due an additional refund for both my federal and state returns. It also shows a gain of $8 (vs. $1,037.44), which is consistent with what is shown on eTrade's Supplement statement. So my question is, should I update the Adjusted Cost Basis in TurboTax from zero (0) to $1,029.00?

1099-B Form (short term, non-covered):

QTY Sold: 140

Date Acquired: 4/15

Date Sold (box 1c): 4/19

Proceeds (box 1d): $1,037.44

Cost Basis: $0.00

Gain/Loss Amount: $1,037.44

eTrade Supplement statement:

QTY: 140

Date Acquired: 4/15

Date Sold: 4/19

Proceeds: $1,037.44

Cost Basis: $0.00

Adjustment Amount: $1,029.00

Adjusted Cost Basis: $1,029.00

Adjusted Gain: $8.44

[AnnetteB · Accepted solution]

Yes, you do need to amend your return to make the adjustment to the cost basis. 

Take a look at the following article for a good explanation about how RSU stock award work and what is reported on your tax return:  https://thefinancebuff.com/rsu-sell-to-cover-deconstructed.html

[TomYoung]

Yes, you do need to amend your income tax return because you did use the wrong basis.

Brokers are only required to report your "out of pocket" basis.  For an RSU that's $0.  But your correct basis for the shares sold, stated as a "per share" number, is the same as the per share "fair market value" used by the broker to calculate the compensation created by the vesting of the GROSS number of shares.

Presumably that $1,029.00 amount is correct for whatever number of shares you sold.

The amend process is explained here:

http://turbotax.intuit.com/support/iq/Amend-a-Return/How-to-Amend--Change-or-Correct--a-Return-You-A...

Go back to that trade and enter the correct basis.  You should be due a refund.

Tom Young

[gordonwd5]

How do you tell (report to) the IRS the difference?