1099B Sell to Cover transaction

[cathycwa]

I received this 1099-B w/regard to stock granted from a former employer.  Was not aware this transaction was happening and am not clear on how to report this based on the info on the 1099-B (see photo)

[DawnC]

Enter the 1099-B in TurboTax using these instructions.    All the information you need is on your form.  

[cathycwa]

What does it mean by "Non Covered" in Box 5?

[KrisD15]

Non-covered means the basis (value) might not be reported to the IRS.

You are getting a 1099-B because the employer gave you  stock as compensation and this stock is considered income.

Because you will be taxed on this additional income from the stock award (reported in Box 1 on your W-2)  very often some of the stock is sold right away with the idea that the money you get from the sale will cover some of the tax you'll owe on the stock award. 

The basis for this stock is the amount the former employer reported as wages.

This amount should have also been reported in Box 14 on your W-2 with the letters RSU to indicate your value, or basis, in the stock that was awarded. 

[cathycwa]

Thank you!  Was confused that Box 5 says "Non-Covered" but then Box 12 says "Reported to the IRS" - seems contradictory to me.  Haven't worked for this company for a few years, will need to double check if I received a W-2 - I think this was stock granted after a waiting period of holding other stock

[Mike9241]

there is no box 12 on a 1099-B so the reference is probably box 12V on the W-2. since it seems the date acquired is 2023, you should have gotten a 2023 w-2. You'll have to check with the company.  as a side note you may own additional shares of the company. these would likely be only the shares sold to cover the payroll tax or other costs so it's possible you own additional shares. 

[fanfare]

 non-covered means you will check Box B or E on Form 8949.

Term-Short means you will check Box B on Form 8949.

@cathycwa