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blueaggue
Returning Member

Problem with RSU. ESPP and AMT

I have RSU and ESPP from the company, and the cost basis is 0 for RSU in 1099b. As usual I corrected cost basis in form 8949, but this year TurboTax decided I owe AMT tax. When I read the Schedule D AMT I found the cost basis for RSU was revised back to 0 in Schedule D although they were corrected in form 8949. Thus TurboTax added the amount of RSU as gain and my income was falsely increased so AMT was triggered. I wonder how to solve this problem? It seems that there is nothing I can edit since I entered the corrected basis in the easy steps and they were showed in form 8949 correctly. I do notice someone have the same problem with 2021 tax return. I didn't have this problem in the previous years. I am using TT download CD premier version in Mac.

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4 Replies
DavidD66
Expert Alumni

Problem with RSU. ESPP and AMT

Can you clarify a couple of things?  Did you adjust your cost basis by selecting "The cost basis on my statement is incorrect"  on the page with "Select any less common adjustments that apply"?  And did you answer Yes to "Was this a sale of employee stock?"

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blueaggue
Returning Member

Problem with RSU. ESPP and AMT

I adjust the cost basis in Box 1e, and there is a question "Was this a sale of employee stock?" I selected "Yes, this is stock that was acquired through an employee stock plan". Then there is a question "What type of employee stock is this?" I chose "Restricted stock units (RSU)." Then I was asked to enter the sale of the RSU and the purchase of stock shares information. I couldn't find the information of vesting (or release) information so I left those boxes blank, and I guess that's where the problem came. I only know the date vested but I don't know where to find total shares vested etc. 

DavidD66
Expert Alumni

Problem with RSU. ESPP and AMT

RSUs are pretty straight forward; therefore, I recommend you enter your transactions without indicating you are reporting the sale of company stock.  Indicating that is company stock has no impact on what's reported to the IRS.  It only affects what screens and questions you get in the TurboTax interview.  When RSUs vest (the stock is delivered) the entire amount is ordinary income.  Your employer must collect payroll taxes, or sell shares to pay it.  Since you are taxed on the entire amount, you basis is the amount that is added to your W-2 which you are taxed on.  If you retain the stock, any gains on the sale will be short term if you hold the stock one year or less, and long term if you hold it more than one year.

 

When you enter your transaction(s), your cost basis (per share) is the value of the RSU/stock on the date they vested (which is also the amount included as wages in box 1 of your W-2) divided by the total number of Units (shares).  You should enter whatever is reported on the 1099-B, and then wen you get to the page with "Select any less common adjustments that apply?" select "The cost basis on my statement is incorrect".  Next you will enter the correct cost basis.  

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blueaggue
Returning Member

Problem with RSU. ESPP and AMT

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