topic RSU Reporting - Step by step option vs direct option in form 8949 in Investors & landlords

RSU Reporting - Step by step option vs direct option in form 8949

taxfiler313 — Thu, 06 Jun 2019 14:24:15 GMT

Last year, I used the Step-by-Step option of entering my RSU sales for each lot. I entered the information of my RSU sales that included the details of RSU vesting, shares traded for tax and so on.

This year, instead of using the step-by-step option, I directly entered the adjusted cost basis and gains and losses for each lot from the information provided in my broker's website. The total taxable amount was calculated accurately in either case. However, last year's form 8949 shows my cost or other basis (box e) as 0, the amount of adjustment in box g with the ordinary income realized in each lot and box f filled with code O. In this year's form 8949, the adjusted cost basis was entered in the box e and boxes g and f are filled as 0.

Is there any problem in reporting it as I did for this year? Would I have to amend this form and file it with step-by-step? Please advise

"Can you let me know when would i have to use step-by-ste...

TomYoung — Thu, 06 Jun 2019 14:24:17 GMT

"Can you let me know when would i have to use step-by-step vs direct entry of adjusted cost basis while reporting RSU sales in Turbo Tax?"

The answer to that question is: There really is no situation where you'd HAVE to use the RSU step by step interview. There is no "income tax reporting" reason to do so. That is nowhere in your income tax return where you declare "I got these stocks through an RSU"; all you are selling is plain-vanilla stock, not a bit different than a stock you might buy through your stockbroker.

There's really only two situations where you might want to use the RSU step by step process:

You don't know your basis in the stock and you have no clue how to get it.
For some reason your employer didn't report the compensation income on your W-2.

In the first case your entry of the "Market Price on Vesting Date" sets your per share basis.

In the second case TurboTax tells you how much compensation it has calculated for the vesting and asks if it's been reported on your W-2. If you say "No" then TurboTax includes the amount on line 7 of the Form 1040.

But typically you do know, or can easily figure out, your per share basis and, hence, the basis to report for the number of shares you sold, and probably 99.9% of the time the compensation created by the vesting has been reported on your W-2.

Tom Young

I believe you will be fine. There is a remote chance you...

DDollar — Thu, 06 Jun 2019 14:24:21 GMT

I believe you will be fine. There is a remote chance you could get a letter from the IRS. If so, just respond with a letter and explain like you did in your question.

Thank you, this is helpful

taxfiler313 — Thu, 06 Jun 2019 14:24:23 GMT

Thank you, this is helpful

Can you let me know when would i have to use step-by-step...

taxfiler313 — Thu, 06 Jun 2019 14:24:24 GMT

Can you let me know when would i have to use step-by-step vs direct entry of adjusted cost basis while reporting RSU sales in Turbo Tax? It is quite confusing