How to enter RSU vested stock that was sold

[AmyC]

Yes. Tax forms do go on the tax return. The 1099-B with a loss should be entered.

Your 2020 1099-B, the IRS will eventually notice you did not file it. If it also has a loss or very small gain, the IRS will not be concerned. Otherwise, you will need to file an amended return. 

If you owe money, you will want to pay it sooner rather than later with additional penalties and interest.

 Please:

• Save a copy of the original return before doing an amended return.
• See how to file an amended return.
• Follow your amend at track an amended return 
• Here is a great FAQ to show the math for amended returns. 
• If you will owe money - make that payment right away.

In addition, you may need to file a state return. 

• See how at  I need to amend my state return.

Since you must paper file, tracking is recommended to ensure the safe arrival of your forms.

@TaxFilingMom

[sinha0009]

My situation is as follows:

I had some RSUs and on 3/15/21 my company sold 403 of them for tax purposes and sent me an adjusted cost basis for them. I entered that information in the first screen of TT which asked for Box 1a to Box 1e details.

Then I got to screen 2 which asked for "Any of these less common items on your xxxx?". I skipped that screen. Next it asked for whether this is an ESPP or NQSO, RS, RSU.  I selected RSU.  It next asked for the employer and then it took me to this screen:

Is this correct? I did not sell any RSUs that vested. Only my company sold 403 for tax reasons. Should I enter 0 or 403 above?

Next, it then takes me to the "Enter Vesting (or Release) Information" and asks for the following:

What should I enter on this screen? When I entered the above information, I get an error while doing the smart check.

Please help!

[GeorgeM777]

If you did not sell any of your RSUs, then you don't have anything to report.  You are correct in that your company sold 403 shares to cover the taxes, and that amount should already be included on your W-2.   

If you had sold some or all of your RSUs, you would enter what you sold first, and then as you are seeing now, TurboTax will inquire about how many of the shares were sold to cover tax withholding obligations.  TurboTax does this so that it can calculate your gain or loss on the shares you sold versus the shares the company sold.  Sometimes, there could be a small gain or loss on the shares that the company sold to cover taxes.  

Check the price of your vested shares, that will be your cost basis, and compare that to the price of the 403 shares the company sold.  Are they the same price?  If yes, then there is nothing to report as the company would have included the proceeds from the sale on your W-2.  If those 403 shares were sold at a price higher or lower than your cost basis, then report that sale as a regular stock trade.  Reporting the sale of the 403 shares (assuming you have to report them) as a regular stock trade will avoid the issues associated with an RSU sale.  

@sinha0009