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posted Jun 5, 2019 10:32:15 PM

Code v in box 12c on w2 and 1099B gain/loss and impact on taxable income

In box 12c, I have code V dollars that represent the value of my vested RSU's (of which taxes were taken out). I also received a 1099-B that is reporting the sales of the RSU's, and includes a large gain (roughly equal to the number in box 12c, code V). When I enter the 1099-B data, my taxes increase significantly, although I know I have been taxed on the RSU's, and this was included in my reported income on my W2. Help!

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1 Replies
Level 13
Jun 5, 2019 10:32:16 PM

You are using the wrong basis when you report the sale.  Your basis per share is the same per share fair market value used to calculate the compensation income reported on your W-2.  The broker is, undoubtedly, reporting as basis the amount you paid out of pocket to get the stock, which is $0.  Accordingly the "gain/compensation" gets reported twice.

Using the spreadsheet-like "fill in the boxes" default TurboTax 1099-B entry form enter the 1099-B exactly as it reads. 

Tick the box next to "This sale involves an employee stock plan (including ESPP) or an uncommon situation." 

Click the blue "Start Now" button that shows up and then click the radio button next to "My 1099-B has info I know isn't right, or it has extra info I need to add." 

That will allow you to add the missing amount of basis and TurboTax will show all this correctly on Form 8949.

The typical outcome of a same day sale is a small loss due to broker commissions and fees.

Tom Young

EDIT: SINCE THE SOFTWARE WRITERS AT TURBOTAX SEEM TO CHANGE THE INTERVIEW CONCERNING THE SALE OF SECURITIES EVERY YEAR, THE DESCRIPTIONS ABOVE CONCERNING THE TURBOTAX PROGRAM ARE ONLY APPLICABLE TO THE TURBOTAX PROGRAM FOR THE YEAR THE QUESTION WAS ASKED.