reconciling RSA sale: 1099-B, W2-box14 and brokers supplemental statement

[5spice]

My question is regarding “restricted stock” (RSAs) sales:

• My W-2 lists the FMV (fair market value) of the RSAs when they were released to me in “box 14”
• RSAs were withheld by my company to pay the taxes on these shares which is included on my W2, and the net shares is all I see in my brokerage
• The 1099-B lists proceeds from the stock I sold

What I don’t understand is that there is a supplement statement from my broker. The cost basis is listed as 0. Then there are two columns for “adjustment income” and “adjusted cost basis” which are equal.

So, for example, this is similar to what I see:

W-2 box #14                            = 1000

1099-B proceeds                    = 2000

1099-B cost basis                    = 0

“supplement statement” proceeds               = 2000 (same as 1099-B proceeds)

“supplement statement” adjusted amount = 2100

“supplement statement” cost basis              = 2100

“supplement statement” loss                         = (100)

It seems like I have only paid taxes on the fmv when I received the shares. How do I reconcile that with the real sale value when I sold the shares? Is that where the “adjustment income” is used?

thx for your help!

[RobertG · Accepted solution]

You need to know how many RSUs vested and how many were withheld for taxes in order to determine your basis.

You should be able to find the grant information on your 1099-B form or your consolidated statement. If you can’t find this info, contact your brokerage or your employer's stock plan administrator.

To report RSU sales in TurboTax:

When you enter you 1099-B information you will be asked: 'Do these sales include any employee stock? This includes ESPP, RSU, RS, NQSO, and ISO' Say yes.

Then you will be asked 'What type of investment did you sell?' Select 'Restricted stock units'

Check the box that says 'The cost basis is incorrect or missing on my 1099-B'

Then select 'I need help figuring out my cost basis'

You will be prompted to enter your vesting information.

RSUs are taxed when they vest. Income is reported on the W-2 and shares are withheld to cover tax on the shares. Nothing else is reported on the tax return until the shares are sold.

A 1099-B is issued when the shares are sold. The basis of the shares is the market rate of the shares at the time of vesting that was reported as income on the W-2. When the sale is reported there will be a capital gain or loss. If sold the same day they vest, there will be a small capital loss due to the sales fee.