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Entering RSU "in-lieu" payment

I believe it's called that. Using Turbotax Premeir. Goes roughly like this:

156 RSUs vested. Calculation of the amount for taxes shows $ x required to be deducted for taxes, which works out as 63.69 shares. Company deducts 64 shares for taxes, then pays out to me in cash the .31 shares difference. The .31 shares shows on my 1099B but not on the "statement from employer" so I'm not sure how to fill in the "Vesting or Release" screen in TurboTax.

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1 Reply
DavidD66
Expert Alumni

Entering RSU "in-lieu" payment

For RSUs that were included in your income reported on your W-2 (box 1), and taxes withheld, I find it easier to skip the Employer Stock step-by-Step and just what is on the 1099-B, and then adjust the cost basis as necessary.  

 

If you received a stock award (e.g. Resricted Stock, or RSUs), tax is assessed on the value of the stock on the day the stock vests/ is delivered.  That amount is ordinary income, and is included in Wages on Box of your W-2 for that year.  Your cost basis is also the value of the stock on the day it vests or is delivered.  The problem is, brokers don't have (or don't report) that information.  If you know the amount that was added to your income, that is your actual cost basis.  In order to keep from paying tax on the stock award twice, you have to correct your cost basis.  To do so, go to that 1099-B transaction, and on the page with the Description, Date Acquired, Date of Sale, Sales Price, and Adjusted Cost or Other Basis, click on "I'll enter additional info on my own".  On the next page, enter the "Corrected cost basis"

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