Entering Adjusted Cost Basis for ETrade

[johnsantaclara]

Dear Expert, I sold RSUs and ESPP from my previous employer whom left left in 2019. I am using TurboTax Premier Desktop version and am trying to enter and update the Adjusted cost basis from ETrade Supplemental form for RSUs and ESPP. But once I do that, TurboTax is now making me re-enter many details manually, which are not available in 1099 nor supplemental form. Am I missing something because I remember being able to just update the cost basis last year easily?

For example, for ESPP, it asks me to "Amount of Compensation Income for This Sale" . Where do I get this from?

Would you please share the steps to just update the cost basis for ESPP and RSUs?  I think I may be doing this the wrong way, hence my request.

[ThomasM125]

Normally, there is an ordinary income (compensation) component of your employee stock sale that is included in your wage income as reported in box 1 of your W-2 form. Often, that amount will not be factored into the cost basis reported on the form 1099-B that you receive reporting the stock sale. So, when you enter your 1099-B, you may need to add the compensation income reported on your W-2 form to the basis reported on your form 1099-B.

You will see an option when you enter an investment sale in TurboTax to adjust the cost basis, and this is all you need to do once you have entered your W-2 form to complete the entry of your employee stock sale in TurboTax, assuming your compensation was entered on your W-2 form. You will see this in TurboTax to enter an adjustment to your gain/loss on investment sale:

[johnsantaclara]

Thank you so much. After importing ETrade, I selected the option which said "My 1099-B has info I know isn't right, or it has extra info I need to add" .

Now I click Edit on each ESPP Shares and I reached the screen you posted. These shares were bought by my previous employer in 2018 and I sold them in 2020, so my W2 from 2020 is from current employer. Here's my question:

In the screen you posted

1) should I update the Total cost basis  (sum off all 1e) with the Adjusted Cost basis from ETrade Supplement form,

2) or should I do "Continue" and will it automatically take care?

3) Or should i check the box "I need to enter amounts from box 1, box g or other adjustments"?

This is very confusing. Thanks again for your kind advice.

[DianeW777]

Yes, you will need to update the cost basis for your stock sale. You can simply do that without using the other adjustments box.

TurboTax will not know about the additional income on your 2018 W-2 since the stock was sold in 2020. Also, it would be unknown what shares were sold as compared to purchase date, so this has to come from you.

[nareshguptharanga]

I guess TT should get upgraded to automatically read supplement document and adjust our cost base. I see this is lot of manual work here if we have more proceedings/sales. 

[akim13]

I have a 119 transactions that I have to add the adjusted cost basis to and I have click through three screens for each one. This is dumb.