Sale of employer securities in TurboTax State return

[michael-jl]

Yes, Turbotax is downright negligent on this one, all of the official wording misses the most important aspect: This form is for reporting capital gains on sales of securities received as part of a "Qualified Employee Benefit Plan." They key is finding the definition of the term Qualified Employee Benefit Plan. In short, this is capital gains from stock received from your *retirement plan*. RSUs on your W2 do not apply, nor does an ESPP (as noted).

TurboTax need to fix this item to specify in the help that this only applies to stock received in a Qualified Employee Benefit Plan and then *define what that means*

[jeffhowe]

I've been looking into this issue too, and I think this article helps clarify what the IRS means by a stock bonus plan:

//www.nasdaq.com/articles/how-does%2Dstock-bonus-plan-work-2016-01-16

Like ESOPs and ESPPs, I think RSUs granted by other non-retirement type bonus plans would not be applicable to the Form IL-4644.

[apd2zn]

Hi All - I'm struggling on this topic this year as well. Every year I receive RSUs that vest from my company - in 2024, I decided to sell all the ones that I held for longer than 1 year. Fidelity gave me a 1099 that I imported for my Federal taxes without issue.

However when I got to the IL portion, and it had me fill our the same/similar info for the stock sales, which I thought was a bit odd, but didn't think anything of it, until I got ready to file, and it stated that I couldn't e-file because of the stocks that I entered for IL (via an IL-4644 form). I'm concerned here when I Google about the form (from IL dept of revenue), the instructions mention using a 1040, schedule D or a 1041, schedule D - neither of which I have from Fidelity. So it really makes me wonder if I should be entering this info for the sales into TurboTax at all? Any advice would be appreciated.

[DianeW777]

Yes, the same information is requested on Form IL-4644 that is entered on Schedule D when it is RSUs that you are dealing with (employer stock). Be sure you are entering only what is required in the state portion of your tax return.

What is the purpose of Form IL-4644? 

This form is to report the gains from only the sale or exchange of securities of an employer that you received in a distribution from a qualified employee pension, profit-sharing, or stock bonus plan. Do not use this form for the sale or exchange of securities received as the result of the exercise of a stock option under an employee stock purchase plan.

You can print your return before you file using the steps below. This will give you a clearer picture of the tax return once you have completed your entries.

You have access to all forms when you choose to print your return in TurboTax Online/Mobile.  However you are required to pay before printing, but do not have to file until you are ready.

• Can I print a copy of my return in TurboTax Online before filing?

If you are using TurboTax Desktop you can switch to Forms and review all forms and worksheets.

@apd2zn