rsu grant - w2

[santhosh1987]

My companys stock vested in sep 2021 and tax was already withhold by granting me less stocks. I was told that , it will be shown in w2 box14 , but nothing is showing up.  I can confirm that fidelity did withhold and vested remaining stocks. How should i proceed in this case?

[RaifH · Accepted solution]

Box 14 is not standardized and does not require your employer to report specific information. Reporting RSUs here is common but not required. It is possible that the additional wages and taxes withheld are reported on your W-2 as they should be without an amount appearing in Box 14. If you are not sure if the RSUs are included in your wages or if the taxes being withheld are reported, you can check with the issuer of your W-2. You can also compare the wages and taxes withheld to a recent pay stub or see if you received a pay stub on the date that your RSUs vested.

[santhosh1987]

I can see the federal tax withold a increase of 2500 + in next pay statement after rsu got vested. so its defintely a  withhold . In turbo tax should i report this or just add the gain i made on vested amount? if so, should it be under  wages/income "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other" ?

Thank you very much for you response.

[santhosh1987]

Also my capital loss for this year in stocks/options are -13k , when i added the RSU's vested (6.5K). It shows capital loss as ( -6.5K) instead of -13k. RSU's are showing as gain. Is that correct?

[RaifH]

Since you saw the increase in withholding, the wages and taxes withheld are being properly reported on your W-2 even though nothing appears in your box 14. 

Fidelity should also provide you with a Form 1099-B for the sale of the stocks that were vested and then sold to cover the taxes. This information will be reported in the Federal > Wages & Income > Investment Income > Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) section. 

Since they were sold right away, there probably should not be much in the way of a gain or loss and your capital loss should not change significantly. There may be a slight loss if you paid any commission on the sale. If the entire amount of your RSU sale is being reported as a gain, this is incorrect. To report this transaction correctly:

1. In the Federal > Wages & Income > Investment Income section of your return, click Start/Revisit next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
2. Answer Yes and then select stocks. Import or enter your transactions manually. 
3. For the RSU transactions, make sure to select Yes to Do these sales include any employee stock?
4. Enter the transactions as they appear on the 1099-B with RSU selected as the type of investment.
5. If the basis reported on the 1099-B is not correct, you will be able to adjust it to match the supplemental information provided. If you do not have supplemental information, you will have to determine the cost basis based on the amount of the reward and the percentage of the shares you sold. 

For more information on RSUs and how to report them, please see this TurboTax article.

[santhosh1987]

Under 1099B form (it is not supplemental information) , i am seeing "Short-term transactions for which basis is not reported to the IRS"

In turbo tax Sales section - should I select “short term basis not reported to IRS (non covered)"? ( How does IRS know that fidelity did federal withhold for this transaction)

Turbo tax asking for below boxes
1a - Description of property, Stock or Other Symbol, CUSIP
1b - Date acquired
1c - Date Sold or Disposed
1d - Proceeds
1e - Cost or Other Basis

Supplemental information doesn’t have 1a,1b,1c,1d and 1e, but   it has
Description of Property, Stock or Other Symbol, Cusip
Date of acquisition(x)
Date Sold or Disposed
Proceeds
Ordinary Income Reported (y)
Adjusted Cost or Other Basis (z)

I am able to match turbo tax boxes for 1a,1b,1c, and 1d  with supplemental information (Description of Property, Stock or Other Symbol, Cusip,Date of acquisition(x),Date Sold or Disposed,Proceeds respectively) . Can I have "Adjusted Cost or Other Basis (z)" at 1e (cost or other basis) on turbo tax? or should it be "Ordinary Income Reported (y) " at 1e?

If i use "supplemental information", should i be selecting "The cost basis is incorrect or missing on my 1099‑B"?

[FangxiaL]

Make sure to enter sales one by one, not summary entries:

• Sales section: Short-term basis not reported to IRS (noncovered);
• Type of investment: RSU
• Check the box The cost basis is incorrect or missing my1099-B
• On the next screen, check the first button I found my adjusted cost basis.

The adjusted cost basis is what you have paid income tax on, now you don't want to pay tax again on the income already taxed.

[santhosh1987]

• Sales section: Short-term basis not reported to IRS (noncovered);
• Type of investment: RSU
• I selected Box 1e - Cost or other basis as $0.00 and then did Check the box The cost basis is incorrect or missing my1099-B
• On the next screen "None of these apply" and on next screen, check the first button I found my  cost basis --> 'cost basis or adjusted cost basis' as shown in the supplemental form "

  Adjusted Cost or Other Basis (z)" 

  Is that right?

[RaifH · Accepted solution]

Yes, that is exactly correct. Entered that way, you should not be paying the tax on your RSUs twice. The gain or loss from the sale should be minimal since you sold the shares held for taxes as soon as they vested.