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kekocher
New Member

RSU and ESPP shares have been calculated and my W2 shows my stock income; however, the TurboTax amount computed is exactly 2X more than my W2. What am I doing wrong?

 
1 Reply
TomYoung
Level 13

RSU and ESPP shares have been calculated and my W2 shows my stock income; however, the TurboTax amount computed is exactly 2X more than my W2. What am I doing wrong?

IF the compensation created by the vesting (RSU) or sale (ESPP) is reported on the W-2 - a near certainty for the vesting of the RSU, a "might or might not be" for sale of the ESPP shares - THEN there's no need at all to use the RSU and ESPP "guide me" interviews, as long as you know the correct basis to use.

So one way to correct this would be to delete the sales and re-enter them using the "regular" 1099-B entry process.  You'd enter the 1099-B exactly as it reads - wrong basis and all - and then correct the basis by clicking on the "I'll enter additional info on my own" blue button.  On the next page enter the correct basis in the "Corrected cost basis" box.  The correct basis is (number of shares sold) x (correct per share basis, which includes the compensation per share)

TurboTax will report the sale on Form 8949 "as reported by the broker" but will put an adjustment figure into column (g) of the Form, a code "B" into column (f) of the Form, and the correct amount of gain or loss which includes the adjustment.

As to "What am I doing wrong?" the answer here is easy for the RSU shares: you've entered the same vesting twice.  Remember, it's the vesting of the RSU that creates compensation.  So, for example, if 100 shares vested and you sold those shares in two different sales, answering "100" to the question "Total shares vested/released" with each sale, TurboTax is going to look at that as two separate vestings and calculate compensation on 200 shares.

The answer's not so easy for the ESPP shares unless you had some sort of mixture of Qualified sales, (typically NOT reported on the W-2), and NonQualified sales, (almost certainly reported on the W-2.)  The compensation on this employer stock incentive program is based on the sale of the stock so it's not so easy to see how you could have a perfect doubling here.

Tom Young

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