1099-B Entry Question

[memps02]

TurboTax Experts,

I worked for Employer 1 at the beginning of 2021. Part of the compensation from Employer 1 included RSUs that vested along a predetermined schedule. The division I worked for as part of Employer 1 was purchased by Employer 2 in February of 2021. Employer 1 and Employer 2 arrived at an agreement where the RSUs that I was scheduled to receive from Employer 1 would be honored for 1 yr after the acquisition date. At the end of the year, I received a 1099-B detailing the sales of the vested RSUs I received from Employer 1; however, the total amount of the awarded (and vested) RSUs was reported on the W-2 from Employer 2. When inputting the information from my 1099-B in TurboTax, should I indicate that it was provided by Employer 2 since it is included on the W-2 from Employer 2, even though the RSUs were shares of Employer 1's stock? Thank you in advance for any assistance that is able to be provided.

[RobertB4444]

Yes.  Matching the forms is the most important thing for making sure that the IRS views your return as accurate.  If the RSUs appear on employer 2's W2 then match the trades to that.

[memps02]

RobertB,

Thank you very much for your response! I'm concerned though because TurboTax only gives me two options and both seem to be incorrect.

Option 1: State that the shares that were sold were of Employer 1's shares but are NOT reported on the W-2 from Employer 1.

Option 2: State that the shares that were sold were of Employer 2's shares and are reported on the W-2 from Employer 2.

If I go with Option 2 to align with how the income from the vested RSUs is reported on my W-2 from Employer 2, Form 8949 then incorrectly shows that the shares were of Employer 2's company, when in actuality, they were shares of Employer 1's company. For what it's worth both employers are publicly traded companies.

Am I missing some way to report that the shares were of Employer 1's shares, but that the income from the vested RSUs was reported on the W-2 from Employer 2? I'm using TurboTax Premier to prepare my taxes.

[RobertB4444]

@memps02  Your situation is pretty unique and the software isn't set up to enter it exactly as it appears on your W-2s.  The truth is that the W-2s are wrong - the stock sale should have been entered on employer number one's W-2.  However, the IRS will match numbers and the numbers will match just fine.  So just enter employer 2 for both and you'll be fine.