how to report the stock of "sale to cover" nature

Forum|Forum|2 months ago
April 16, 2026
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the meaning of EPSS stocks are sale to cover

TurboTax Online

AmyC

Level 15

The value of the shares sold is in your w2 box 1 wages. The sale on the 1099-B might include the cost basis on your w2. Follow these steps to report the sale of a few stocks sold to cover the taxes:

Go to Federal > Wages & Income.
Find Investments and Savings
select Stocks, Cryptocurrency, Mutual Funds, etc.
enter your 1099-B
When entering the specific sale, TurboTax will ask "What type of investment did you sell?"
Select Employee Stock (RSU, ESPP, etc.).
Select the specific subtype ESPP
TurboTax will eventually ask: "Do you need to adjust your cost basis?" or "The cost basis on my 1099-B is incorrect."
If your 1099-B doesn't have a cost basis or it is not what was added in your w2:
1. Check this box. * You will need your Supplemental Brokerage Account Statement (usually a PDF from E*Trade, Schwab, Fidelity, etc.). This document lists the "Adjusted Cost Basis."
2. Enter the fair market value of the shares on the date they vested as your basis.
The Result: Your "Net Gain" on a Sale to Cover should be very close to $0 (or a small loss/gain due to minor price fluctuations between the vest time and the sale time).