After entering all the RSU I sold, the amount computed by Turbotax is twice the amount displayed on my W2? Why? Thank you!

[TomYoung · Accepted solution]

I ASSUME what you are saying here - correct me if I'm wrong - that you entered the sale of stock using TurboTax's "RSU step by step" interview and when you came to the end of the "Stocks, Mutual Funds, Bonds, Other" interview and viewed the page titled "Your Employee Stock Plan Results" the amount of compensation calculated by TurboTax was twice the amount reported on the W-2.

If that's correct then the problem is that you told TurboTax about the same vesting twice, probably because you had two sales of the stock acquired via the RSU to report.

TurboTax calculates the compensation in the same fashion that your employer does: (GROSS number of shares vesting) x (per share fair market value at vesting date).  So if you had a vesting of, say, 100 shares and sold stock twice out of that vesting, you more than likely entered "100" in the "Total Shares/Vested Released" for each sale and TurboTax doesn't know that you're referring to the same vesting.  So it calculates the compensation on two vestings of 100 shares, doubling your actual compensation figure.

If you want to continue to use the "RSU step by step" interview - it's not really necessary to use that interview for any "income tax reporting" reason - then go back and reduce the number of shares in the two "Total Shares/Vested Released" boxes so that there's enough shares in the box to cover each sale and the total of those two boxes adds up to 100 shares.  Also, leave the "Shares Withheld (Traded) to Pay Taxes" blank. 

That should work for you.

Tom Young

[ALMAXANT]

Thank you  so much!

[Anonymous]

I'm having the same problem.  I heard what you said, but I need just a little more info. 

On my 1099-B, I have two entries for the same release lot.  One entry is for stocks I sold after they were released and one entry is for stocks that were sold to cover the taxes.  For both of them, I entered the full amount of shares that were released which is probably what's causing the grossly inflated RSU amount in my Employee Stock Plan Results.

So, two questions.  I see that you said to split the total.  Can I choose whatever numbers I want as long as they cover the sale and between the two they equal the actual total?

And finally, you said to leave the "Shares Withheld (Traded) to Pay Taxes" blank.  Is that only for the one that represents the sale that I initiated?  Or do I leave it blank for both?

Thanks in advance for the additional details.  I'm really struggling with this.

[Anonymous]

So I figured it out.  Fun fact, now my summary page is correct (ching, ching) but my taxes owed amount did not change.  (boo)

[mkarthik01]

How did you solve it? I have the same problem.

[DawnC]

Quoting Tom Young from above:

TurboTax calculates the compensation in the same fashion that your employer does: (GROSS number of shares vesting) x (per share fair market value at vesting date).  So if you had a vesting of, say, 100 shares and sold stock twice out of that vesting, you more than likely entered "100" in the "Total Shares/Vested Released" for each sale and TurboTax doesn't know that you're referring to the same vesting.  So it calculates the compensation on two vestings of 100 shares, doubling your actual compensation figure.

If you want to continue to use the "RSU step by step" interview - it's not really necessary to use that interview for any "income tax reporting" reason - then go back and reduce the number of shares in the two "Total Shares/Vested Released" boxes so that there's enough shares in the box to cover each sale and the total of those two boxes adds up to 100 shares.  Also, leave the "Shares Withheld (Traded) to Pay Taxes" blank. 

That should work for you.

Tom Young  

@mkarthik01

[rsel]

So if I don't want to use the step by step RSU entry, and don't need to, what's my alternative?  Is there a way to just fill in the info in a table and not have to go through the interview for every entry on my 1099?

[GeorgeM777]

Yes, you could just report the RSU sales as regular stock trades.  If you know your cost basis (that is the price of the stock on the day the shares vested) and you know what the company sold to cover taxes, then you can just report what you sold.  When you get to the page that asks about RSUs, ESPPs, etc., just select Stock, non-employee, or a similar selection.   

What you are trying to do is create an accurate tax return, and if you have all of the information you need (and it appears you do) just report the sales as a regular stock sale.  Now, there could be a gain or loss based on the shares the company sold to cover taxes.  If there was, you can report that sale as a regular stock sale too.  If the price of the shares the company sold was the same as the price of the shares that vested with you, then there would have been no gain or loss.  The proceeds from the "sell to cover" should already be included on your W-2 as part of your total withholding. 

@rsel

[GFG]

We have the same problem ... what TT calculated for "is this income reported on the W2" is higher than the sum of the gross proceeds of all the RSU sales entries on the 1099.  The sum of the gross proceeds entered into TT is exactly the same as what shows on the W2, so TT seems to be inflating that figure for some reason.  

[BrittanyS]

Have you double checked that your stocks are not being duplicated?  As stated above, if following the step by step entry and you have 100 stocks, you will want to verify that any duplicate sale transactions are not being enter twice on the number of stocks entry.  If the number of stocks is duplicated then the amounts will be doubled based on that entry.  

Per, TomYoung's example, "if you had a vesting of, say, 100 shares and sold stock twice out of that vesting, you more than likely entered "100" in the "Total Shares/Vested Released" for each sale and TurboTax doesn't know that you're referring to the same vesting.  So it calculates the compensation on two vesting's of 100 shares, doubling your actual compensation figure."

To correct, you will check the entry box for total shares/vested released and make sure the entry is not more than it should be.  To check this in TurboTax online, you will follow these steps:

1. Click wages and income
2. Scroll Down to Investments and savings, click show more
3. Click revisit next to stocks, cryptocurrency, mutual funds, bonds, other (1099-B)
4. Verify sale entries and total shares/vested released are accurate

@GFG