RSU Impact on W2

[jcardoso7]

This is the first time on my W2 (new company, started in 2022) where box 14 lists an amount and is noted RSU.  I received some RSU during the year, but didn't sell.  I'm assuming these are grossing up my wages on my W2, which in turn is affecting how much tax I owe.

However, I also have a 1099B that shows shares that my company sold on my behalf to cover the taxes on these RSU. 

So, am I being double taxed - once through the share sale and twice through the gross up in my W2?

Thanks.

[ThomasM125]

The cost basis of the shares sold as reported on the 1099-B may not be taking into consideration the income reported on your W-2 form, in which case you need to adjust the cost basis reported on the form 1099-B. So, first enter the form 1099-B as stated, then adjust the cost basis by adding the income reported on your W-2 for the restricted stock units income as follows:

1. Choose the Federal option on your left menu bar
2. Choose Wages & Income
3. Choose the Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) option
4. Choose the Stocks, Bonds, Mutual Funds option
5. Enter your Form 1099-B information and check the box  that says "The cost basis is incorrect or missing on my 1099-B" and you will see an option to adjust the cost basis.

[jcardoso7]

@ThomasM125 thank you.  Just so I have that right, if my W2 says $6.6k of RSU (which includes all vested RSUs, including those sold for taxes) and my 1099B says $2.5k, and the supplement from eTrade shows the adj cost basis of $2.5k also, I would check the box you mention and change the cost basis to $6.6k?

[GeorgeM777]

Because you did not sell any of the RSUs that vested (yes, your company sold some to cover their tax withholding obligations) then you are essentially entering the sold to cover RSUs to determine whether you have a gain or loss on those shares.  In most instances, because a company will sell to cover as soon as the RSUs vest, there is no capital gain or loss.  However, whether there is a gain or loss, you still need to enter the sold to cover sale.

To determine your per share cost basis, divide the total value of the RSUs, (you can use the amount in box 14 of your W-2) by the number of shares that vested.  The number that vested includes all of your shares, the shares that remain in your account and the shares that were sold to cover.  Once you know the per share basis, you can multiply the number of shares sold to cover by the per share basis and enter the resulting number into TurboTax in the cost/basis field.  

Just an fyi, the box 14 amount on your W-2 has already been included in box 1, Wages.   

@jcardoso7