I have used TurboTax for many years, and successfully used the advice in this thread to enter RSU shares that are sold to cover taxes: https://ttlc.intuit.com/community/taxes/discussion/rsu-confusion-with-sell-to-cover-and-1099-b/00/29...
This time, for 2023 taxes, I am finding that the money from these sales is not being counted toward the tax I have paid, resulting in a large tax bill. After entering the shares, and adding the basis, TurboTax does not ask me the usual questions about when the shares were vested and released. The income from the released shares is included in my W-2, but the sale of these shares (that was done to cover the taxes) is not counted toward the tax paid. Has anyone found a solution?
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I deleted all my RSU sales and started again. My federal tax due did not change when I deleted the RSU shares, nor after I re-entered them.
I did find the way to get TurboTax to ask the vesting questions:
I added a 1099-B for "No Financial Institution" (this is what was entered automatically in previous years)
Chose to enter stocks one by one.
The values in < > are from my Release Confirmation statement from the company
On the "Now, enter one sale on your No Financial Institution 1099‑B" page,
Sales section: select Short term did not receive 1099-B form
What type of investment did you sell: Restricted stock units (RSU)
Box 1a: <# shares traded> of <company name>
Box 1b: date acquired: <release date>
Box 1c: date sold: <release date>
Box 1d: proceeds: <Trade Value amount>
Box 1e: cost or other basis: $0
checked: The cost basis is incorrect or missing on my 1099‑B
continue
On "Enter your cost basis to ensure your best outcome" page
selected: I can't find it and need help.
^note very important, if you select "I found my cost basis" you don't get the release questions
continue
On "Tell us about your RSU sale" page
select An employer that has an existing W-2 on this return and select <employer name> from dropdown
Number of shares sold (Box 1a) : <Shares Traded>
On "Let's get some purchase info about this RSU sale"
Total shares vested/released: <Shares Released>
Shares withheld (traded) to pay taxes: <Shares Traded>
Date vested/released: <Release Date>
Market price on vesting date (per share): <Trade Value>
Price you paid per share: $0
Purchase commission or fees paid: $0
On the "Let's Review Your Numbers" page,
The "Federal Taxes You've Paid, Plus Certain Credits" is equal to my W-2 taxes withheld, plus estimated taxes paid, plus the various credits. It does not include the sum of the RSU <Trade Value> that should have been applied to my taxes paid.
On my W-2, Box 2 Federal Income Tax Withheld is less than the sum of my RSU <Trade Value>
On the "Let's review your employee stock plan results" page
The W-2 disposition amount is the sum of the RSU <Trade Value>, but is less than the actual amount in Box 14 of my W-2
There are Dividend Equivalents that were also used to pay tax, but I don't see any place to enter them
@Admin How do I bring this thread to the attention of Turbotax support?
This is what I ended up doing to get TurboTax to "see" the tax payment. I have no idea if this is the correct approach:
From Deductions & Credits:
Under Estimates and Other Taxes Paid:
Choose Other Income Taxes
Under Other Income Taxes Paid in 2023:
Choose Withholding not already entered on a W-2 or 1099
Federal Witholdings amount: I entered <Sum of Trade Value for all shares that were traded to pay taxes>
This brought incorporated these tax payments into my Federal Refund.
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