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posted Feb 22, 2023 9:42:30 AM

Entering RSU Sales properly

I received 1099b that contains RSU sales to cover taxes.  Each quarter, I was release 81 shares, and x RSUs were sold to cover the taxes. The problem I have is that the broker reported 2 separate sales each quarter for each vested period.

Example:

 

Qtr1

Shares Vested: 81 on 03/03/22. Price of Stock at the End of the Day: 18.75

Shares sold on 03/04/22: 2 @ 17.96

Shares sold on 03/04/22: 30@ 17.03 + 6.95 commission

 

When I entered the information on Turbo tax. It calculates the Gain/loss

-2.08 and -63.06. The supplementary worksheet sent by my employee says -1.58 and -58.56

 

How should I entered this properly? Also, I am getting tax for 81 shares or 162, since I had to put the information twice?

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1 Replies
Expert Alumni
Feb 22, 2023 10:28:50 AM

Use the Employer's Supplement document as it is the most recent transaction information.  Because the Supplement adjusts your loss, you may also have to adjust your cost basis and sales proceeds so that the entries result in a loss that is the same as reflected on the Supplement.  Does your Supplement also contain cost basis and sales proceeds information?

 

The sales proceeds from the sold to cover shares (the shares that were sold to cover the tax withholding) should already be included on your W-2.  Thus when you enter your W-2 information, you will also be entering your tax withholding.  It appears that the sales price for the shares that were sold to cover was different than the vesting share price, and thus that loss should be reported on your return and it's likely a short term capital loss.  

 

If 81 shares vested in 2022, and that is all that vested in 2002, then your tax should be based on the value of the 81 shares on the day they vested. These amounts should not be doubled.   While you may enter some information twice, most of the additional information relates to vesting and release dates.  

 

@amoreno006