turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

paul_weld
New Member

My RSU is included in my w2 wages. When I sold the RSU i received a 1099B as well. How can it be income twice?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
yukiko
New Member

My RSU is included in my w2 wages. When I sold the RSU i received a 1099B as well. How can it be income twice?

It is not taxed twice. The RSU included in your W2 is compensation, which is taxed at the fair market value on vesting date. That amount is your cost basis. When you sold the RSU, any appreciation above the cost basis will be taxable.

My RSU is included in my w2 wages. When I sold the RSU i received a 1099B as well. How can it be income twice?

It's "income twice" because you are reporting the wrong basis for the stock you sold.  Brokers only need to report your "out of pocket" cost of acquiring the shares you sold and for most RSU's that's $0.  Your correct per share basis is the per share "fair market value" used by the employer to calculate the compensation reported on the W-2 associated with the vesting.

Enter the 1099-B exactly as it reads and then click the blue "I'll enter additional info on my own" button.  On the next page enter the correct basis in the "Corrected cost basis" box.  The correct basis is: (# of shares sold) x (per share basis for that lot.)

Tom Young


(SINCE THE DEVELOPERS CHANGE THE SECURITY SALE INTERVIEW EVERY SINGLE YEAR I'LL NOTE THAT THIS ANSWER'S DIRECTIONS ON HOW TO CORRECT THE BASIS FOR THE SALE PERTAINS TO THE 2016 INCOME TAX YEAR.  I'M SURE THAT THE INTERVIEW WILL CHANGE IN THE YEARS AFTER THAT.)

Manage cookies