Only portion of RSU reported on W-2

[aakhil2022]

Only the portion of RSU sold for taxes are listed on my W-2. 

note: these numbers are not exact 

I received $4000 worth of RSU this year, and about $1700 was sold to cover tax. I got a 1099-B with the proceeds adding up close to 1700. 

so, when I fill out the 1099-B in TurboTax with the cost basis we found on the brokerage page website, everything goes through fine ($1700 proceeds, about $1700 cost basis, so net gain/loss is almost 0). 

when I say we can’t find our cost basis, and ask TurboTax to calculate for us, it comes up with the $4000 and asks if this was reported on our W-2. I said yes, even though I don’t think they are on the W-2. Im stressed that this was a lie. 

now I’m feeling guilt/regret: I don’t want to commit tax fraud here. When we finally did the 1099-B, rather than having TurboTax run the manual calculation, we just put in the cost basis we had found in the brokerage firm (about $1700) for $1700 of proceeds. They then didn’t ask any questions about whether the $4000 was reported on the W-2. 

I’m pretty sure the $4000 is not on the W-2. The tax return has already been submitted, and I’m feeling pretty stressed I committed tax fraud. Please advise. 

[GeorgeM777]

While we cannot give legal advice, if your mistake was an honest one--and it appears to be so--that hardly rises to the level of tax fraud.  You can amend your return if necessary to make adjustments regarding the RSU amount that should have been reported on your W-2.  You might want to check with your company regarding whether the RSU was reported on your W-2.  Companies are required to include, on the employee's W-2, the value of the RSUs on the day they vested.  They are also required to "sell to cover" to comply with their tax withholding requirements.  Based on your post, it appears your company sold shares to cover the taxes, which would imply that the total RSU value was indeed included on your W-2.  Check box 14 on your W-2.  Companies use box 14 to report items of compensation.  Any item of compensation reported in box 14 is usually included in box 1 wages. 

If you need to amend, before amending your return you will need to wait until such return has been accepted by the IRS.  You can amend a return only after it has been filed and accepted by the IRS.  E-filed returns are considered filed when you have received notice from the government that your return has been accepted.  If your return has been rejected, it is not considered filed.

Mailed returns are considered filed the date you post your return.

When you are ready to amend, you can access your previously filed return, in TurboTax online, from the TurboTax home page.  Scroll down the screen to the section Your tax return & documents.  If you have used TurboTax CD/download, then you can amend your previously filed return by selecting Other Tax Situations, and then scroll down to Other Tax Forms. 

@aakhil2022