I'm at a loss here.
I receive RSUs as part of my compensation. This is reported as part of my wages on my w-2. The grants vest over a 4 year period and given that some of them were granted in another state, and i'm a NY non-resident I need to file IT-203-F.
The problem is that TurboTax is treating 'stock options' like capital gains! After I entered my 20+! vest events manually into the IT-203-F form, the next screen "Capital Gain and Loss Allocation Summary" with an error saying "Your total New York capital gains should not exceed the Federal capital gain or loss amount". Yes, they should not, and they do not, because what I entered is NOT capital gains.
Please advise on how to fix this.
You may have capital gains if you sold your RSUs at a price greater than the market value of the shares on the date such RSUs vested with you. If you did not sell your RSUs, then you are correct in that the RSUs represent a form of compensation and would be included on your W-2. Moreover, there would be no capital gain/loss to report because you did not sell your shares.
Your employer would probably have sold some of the shares that vested to cover their withholding requirements; however, the shares that were sold for withholding are not reported on your return.
If you can, provide some additional information about how you entered your RSUs on your federal return. The information you provide on your federal return should carryover to populate your state returns, including IT-203 F. Before completing your federal section, make sure you have indicated in the Personal Info section that you earned money in another state, namely NY.
The topic is not about selling RSUs. You can correct, if they are sold, it's like any other stock or investment thus there will be some capital gain/loss. This topic is strictly for RSU as part of your compensation.
Federal return does not have the same requirement to spread out RSU grants over multiple years like NY State does. It makes sense, as the purpose of NY State IT-203-F is to allocate comp between different states. This is not relevant on Federal return. To answer your question, RSU portion of my comp is not treated as something separate from my base comp, it is reported as wages in #1 of my W-2, thus it is entered as earned income/wages on fed 1040.
The purpose of NY IT-203-F shc B is not to track capital gains. There is clearly an issue on how this form was implemented in this years TT.
The user here posted a reasonable workaround:
But its pretty hacky and it should be fixed by TT.
This is still a problem in TurboTax 2022, just ran into it myself. I'm ready to file otherwise, but looks like I can't until this is fixed. Guess I'll need to go find someone to do my taxes and bail in TurboTax.
this won't be fixed.
your best bet is to use the workaround from last year.
just add a negative number to match the incorrectly classified 'capital gains' from your RSUs. if you had negative cap gains on your fed return add that to the negative number too otherwise you won't be able to progress.
don't forget to actually include the real income from your stock comp as part of your nyc wages.
Thanks @demens13 , appreciate and agree it's unlikely given they didn't fix it last year.
Also appreciate the suggestion, but decided it's best to give up on TurboTax and use a CFA (turns out, not much more expensive, way less work, and no workarounds). If Intuit doesn't want to support my situation it's not hard to find someone who will.
Some CPAs are not very familiar with the RSU flow on the it-203-f and they really can't enter the correct info without you supplying all the details about each grant (typically available in your stock statement from work) and all vacation days, etc. In my case it's 20+ it-203-f forms, i don't know a cpa willing to do this work, especially not for cheap.
Yeah, I had the same concerns around complexity, but the CFA didn’t seem phased. The price was more than Turbotax, but not much more and way less than I was expecting. But we’ll see how she does.
Regarding the IT-203-Fs: I wrote an excel sheet that makes it easy to type in the *many* RSU award+vest combinations from the RSU website and get the data to plug into the *many* IT-203-F’s. So at least it should be pretty straightforward data entry at this point, and I’ve pretty much done my taxes so I can easily sanity check and know she’ll do it right going forward. Happy to let you know how it goes!