Question about RSUs, 1099-B and W2

[Robertsonland]

So I had RSUs that vested and they just sell quarterly and show up in my paycheck about a month after they sell. They usually show up over two paychecks with the first being a "Tax Cover" and then a Sale Proceeds. 

I also get a 1099-B which shows Gross Proceeds reported to IRS, the Description is the # of shares sold, there is no Date Acquired just a date sold, the proceeds and the Check if Noncovered Security box is checked.

Do I need to enter these on my tax as as 1099-B since they show up on my W2? 

[MarilynG1]

Yes, you need to enter both your W-2 and the 1099-B into TurboTax.  There are two different types of transactions being reported.

Your W-2 is reporting income from your stock vesting (which is compensation).

The 1099-B reports when shares are actually sold, to determine if there was a gain or loss from your vested price to the sale price.

You can use 'Various' for Date Acquired when entering your 1099-B, but you will definitely need the correct Cost Basis.  If that is not on your 1099-B (or shows Cost Basis as $0),  you can refer to company documents that give the FMV of your shares at vesting.

Once you know your Cost Basis, you can enter your 1099-B as a regular stock sale, checking the box to indicate 'cost basis needs to be adjusted' so that you can enter the Cost Basis.  This is often less confusing than using the Employee RSU Stock Sale interview, though both option are available to you.

Here's detailed info Entering RSU Sales as well as an informative article on RSU's and Stock Grants.

[Robertsonland]

Thank you for your reply. They are sold at the exact time they vest. So would the cost basis be the amount they sold for because the Cost or other basis blank. 

Also what do I use for Sales Section Title? Short Term Basis reported to IRS (Covered)? 

The box is checked that Gross Proceeds was reported to IRS.

[RobertB4444 · Accepted solution]

PROBABLY your sale price is the same as your vesting price.  But it's also possible that you made a little on the sale or lost a little.  You should double check.  But most likely there is no change.

Covered indicates that not only have the gross proceeds been reported to the IRS but the basis of the sale has as well.  That way the IRS already knows how much profit you made on the sale and is already looking for that amount.  Most RSUs do not report the basis to the IRS because they don't even bother to calculate the basis so if you are not certain I would check short-term non-covered.  

@Robertsonland