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E*TRADE 1099-B RSUs shares sold by company to cover taxes

My company sells shares for taxes and I received a 1099-B, unfortunately import from the broker is not working with Turbotax (E*TRADE).

 

Question, when entering shares ONLY sold by the company to cover for taxes (I did not sell any shares), my overall tax owed should be the same and not change, is this the correct understanding?

 

When I enter the information from the 1099-B my taxes go up almost half the cost of the RSUs sold for taxes.  How do I fix this?  The adjusted cost basis shows as $0.00 in the 1099-B and the supplemental paperwork.

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3 Replies
JohnB5677
Expert Alumni

E*TRADE 1099-B RSUs shares sold by company to cover taxes

Yes, you will have to pay tax on the shares that were sold.

 

It does not matter if you sold the shares, or the company did.  They were sold from your account, and they will be taxed.

 

When you post your 1099-B there are several factors that determine the value and the tax on the shares sold.

  • You have a cost basis of zero.
    • This means 100% of the value of the stock sold will be taxed.
  • I expect that it was sold in the same year you received the stock.
    • This means it will be taxed as regular income at your highest tax bracket.

Please clarify your question.

 

  • You said: "When I enter the information from the 1099-B my taxes go up almost half the cost of the RSUs sold for taxes."
    • Does that suggest that it was half of the entire RSU award?
  • Do you know what tax bracket you are in?
  • What was the amount that was sold, and what was the increase in tax for that?

Please contact us again and provide some additional details.

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E*TRADE 1099-B RSUs shares sold by company to cover taxes

Details:

- 271 RSUs were transferred from my employer to myself (vested) in 2023

- 83 RSUs were sold to pay for the taxes initiated by the employer

= 188 RSUs remain in the brokerage and I have not exercised them

 

As the 83 shares of stock were sold to cover the cost of the total 271 shares, do I have to pay tax on this again?

In W2 No. 14 the total amount of the RSUs that vested is included, as this is already accounted for (the total amount of the 271 RSUS), do I still need to enter a 1099-B?

AmyC
Expert Alumni

E*TRADE 1099-B RSUs shares sold by company to cover taxes

You need to enter the 1099-B and adjust the basis if necessary. You received 271 shares  at $xx. Determine the price per share. Multiply by 88 to get your basis for the shares sold. Keep great notes.

 

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s. This will protect you down the road as proof of your basis in your various investments. As you go through life, rollovers, RSU sales, and more will be captured for you. This can be digital or paper.

 

 

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