Cost Basis for Sell to Cover RSUs

[ad91]

Please forgive the fact that this is a question similar to the countless RSU related posts I've read to try to better understand my situation. I ask only to be sure that my understanding is correct. 

I was granted RSU's in 03/2019 and some of those vested in 03/2022: 900 RSUs vested into 900 publicly traded company shares, say at $10/share. 

Of those 900 Co. shares, 530 were sold to cover taxes, and this was the amount reported on my 1099-B form as $5,300. The remaining 370 shares are in my possession and not sold for gain or loss yet (this doesn't appear on the 1099-B form).

When filing, I enter this "sell to cover" trade as presented in the 1099-B form. Per the other posts I see I'm to use the "FMV" as the costs basis for this transaction - so would that be $5300 (530 shares x $10, i.e. the amount withheld) or would the cost basis be the total vested amount of $9000?

Additionally, should be W-2 form automatically reflect $9000 as received income (and $5300 withholding)? Or would my income reflect only the net amount, i.e. $3700?  

[Mike9241 · Accepted solution]

your w-2 should reflect as compensation the $9K. taxes taken out of the 530 units sold should also be reflected on your w-2.   the tax basis of the units sold is what was added to your w-2 for those units or $10/share, thus there will be no gain or loss on sale unless there were brokerage fees. 

[taxlady28]

Your employer gave you a form 3922.  Use that form to edit each transaction on your 1099-B with the correct basis.  If you do not have the form, contact your employer for a copy of it.

[ad91]

I don't think I received one as the shares I received were from RSUs that vested rather than through an ESPP

[ad91]

Thanks. As for the quantity of shares would that only be the amount in question under the "sell to cover" trade given I'm still holding on to the other portion of shares that vested? 

[taxlady28]

You need your 1099-B and just report what is on that.  Don't make it anymore complicated.  Check with your employer for the 3922.