Form 1099-B worksheet error

[dew3773]

Turbox tax is calculating a "gain" in situations where RSU's sold to cover exceed the remaining unsold shares.  The error lists the difference as shares unaccounted for and calculates a gain on a zero basis (number of shares times mkt value on date of vesting date.  For example: Total shares vested is 1,000; shares sold to cover is 600, remaining shares is 400, and market value at vest date is $10.  No shares have been sold except those sold to cover.  TurboTax creates an error stating that the difference of 200 shares is unaccounted for and calculates a $2,000 gain ($10x200).  In my situation there are 4 vesting transaction where this error occurs and 10 where the error does not appear.  The difference between these 10 is the number of shares sold to cover is less than the remaining shares held, and again with no other sales.  There is no tax technical reason for this outcome that I am aware of - is this a TurboTax programing error?  How do I address this?

[RobertB4444]

@dew3773  Please clarify - how are you entering these?  The sales sold to cover should be taxed but not the unsold shares and I can't recreate this error.

[dew3773]

@Anonymous 

I am using the step-by-step process under schedule B. Following each of the steps as an RSU.  I have 14 different transactions but this error appears in only 4 transactions where the shares sold to cover is greater than the remaining shares held.  There were no other shares sold except for the sell to cover shares. For example total shares issued at vest 1000; shares sold to cover 550; remaining shares 450.  The error then is disclosed in the RSU Worksheet, Part VI RSUs, Line 25 with a note that says 450 of the 550 shares have been accounted for. Need information for 100 shares.  The result of this error is a gain calculated on the 100 shares at a zero basis.

All sell to cover transactions are properly included in W-2, with taxes withheld. There should be NO tax implication on this transaction. TurboTax seems not to contemplate scenarios where the sell to cover exceeds the shares remaining.

Thanks for looking into this.

[RobertB4444]

In this case the trick is to tell TurboTax only what it needs to know.  Since you are holding the remaining shares and not selling them in this tax year adjust the amount of shares that you are telling the system about to the number that you're selling and the basis for those.  The other shares will be entered in their year of sale. 

[dew3773]

Thanks for the help.  I still could not get it to work but will try again.

Still not understanding why TurboTax creates the error when the # of shares sold to cover exceed the number of shares remaining to be sold. Does not make any sense other than its a flaw in the logic since there is NO tax technical reason that one sell to cover cannot exceed share remaining.  Maybe this should get addressed instead of creating work-arounds that can cause other issues.