Form 1099-B if I did not sell?

[collette13z]

Please help. I received a Form 1099-B from my employer for RSU shares, but I have not sold any shares. The proceeds (box 1d) is lower than the cost (box 1e). Every time I research this form, it says you will receive a 1099-B when you sell stock....I did not sell. Do I still include this in my taxes?? It will be a deduction as the proceeds are lower.

[tchoudry]

Talk to the issuer on this issue and seek clarification.  As the issuer may have converted or sold some stocks on your behalf which you don't either remember or the seller/adjuster forgot to inform you.  In either case, once you get the clarification, you will need to include this in your tax return since it is already reported to the IRS.  Otherwise it will cerate a rejection due to omissions of 1099s and disrupt calculations.

[Opus 17]

You have taxable income when the RSU vests, at the fair market value on that day.

Then later, whenever you actually sell your shares, you have a capital gain or loss based on the change in value from the vesting price to the sales price.

https://turbotax.intuit.com/tax-tips/investments-and-taxes/how-to-report-rsus-or-stock-grants-on-you...

[ThomasM125]

Likely what happened is you took ownership of the restricted stock units, which is a taxable event. The income you earned based on the value of the stocks is reported on your W-2, similar to the way wages are reported, in box 1. Since you received income, taxes must be withheld, so the company sells some of your shares to pay the taxes. They report the taxes in line 2 of your W-2 form. Since you sold shares, the sale is reported on the 1099-B form. So, you should enter that on your tax return as follows:

1. Choose the Federal option on your left menu bar
2. Choose Wages & Income
3. Choose the Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) option
4. Choose Add investments
5. Choose the Stocks, Bonds, Mutual Funds option and follow the instructions