1099B - Question "Do these sales include any employee stock?"

[MamaTN]

The question in TurboTax asks (in reference to 1099B sales) "Do these sales include employee stock?"  It says under it "This includes ESPP, RSU, RS, NQSO, and ISO".  I have RSU's that had previously vested (and thus were taxed as ordinary income at that time).  I sold some of these in 2025.  Are we really supposed to include those in answer to the above question?  My units that were sold all show a basis (of the value when they vested).  I'm not sure why RSU's are included in this question.  Please let me know if I should say yes or no.  Thanks!

[DawnC]

You should say YES - you will need to let TurboTax know how those shares were previously taxed through a W-2.   How do I enter Restricted Stock Units (RSU) sales in TurboTax Online?

When you receive an RSU award, you don't own the stock until it vests. Accordingly, there's nothing to report at the time of the award.

Once the stock has vested, the fair market value of the stock gets reported as ordinary income, usually in box 1 of your W-2. In some companies, employees can earn dividends from unvested RSUs—these are also reported in box 1 of their W-2 forms.

After vesting, you own the stock outright. Should you later sell those shares, you'll get a 1099-B, which will report the gain or loss from the sale.

[MamaTN]

I appreciate your really quick reply Dawn, but I'm still a little confused.  The majority of these stock units that I sold this year had vested in prior years, and were included in my ordinary income thru my W-2 wages in those years.  I imported my 1099-B and it already has the cost basis included for these units (which is the values that were originally reported in my W-2's from prior years).  Is the reason for this question because they want to make sure you have a cost basis included (in case it came thru with $0...with no info)?

And if I do say yes, do I just select the Restricted Stock Unit one by one on each sale line?  Is there anything else that I would need to do, or would that be it?

[DianeW777]

Yes, that is the reason for the question and you should just select Restricted Stock Unit (RSU) one by one on each sale line. 

It seems you already verified the cost basis was included and does equal the amount included in your wages and W-2 at vesting. As long as see the correct cost basis there is nothing else you need to do for these sales.

@MamaTN 

[MamaTN]

Thanks!