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RSU's used for paying RSU taxes

Folks,

 

Tldr : My company sold RSU's, to account for tax,  at the time of vesting.  How do I make sure IRS knows that I paid taxes on the vested RSU income?

 

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Appreciate your help solving this confusion: 

 

1. I got ~100K added to my W2 as RSU income, on top of my base compensation etc. 

2. In the E-Trade reported 1099-B,  short term unreported cost basis comes to ~$50K.    

I entered each line item of the 1099-B separately into TT through the 1099 wizard.  The ~50K is RSU taxes during vesting.    

But I don't see this having an effect on the taxes owed.  Where or how do I make this setting in Turbotax?

 

-Frank

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1 Reply
GeorgeM777
Expert Alumni

RSU's used for paying RSU taxes

When your RSUs vested, your company was obligated to sell some of them (referred to as a sell to cover) to comply with their tax withholding obligations.  The proceeds from the sell to cover RSUs were remitted to the IRS.  Your withholding amount will be on your W-2.  So check your W-2 to ensure your withholding is correct.  The sell to cover shares may appear on a brokerage statement, such as a 1099-B or similar document.   You might also check with your firm to verify the number of RSUs sold to cover the tax withholding. 

 

Your tax refund/amount due may not change until you have entered all of your information, and moved out the the Wages & Income section of TurboTax.  You also need to verify that the cost basis you entered is correct.  Your cost basis in the RSUs will be the value on the day that the RSUs vested.  That cost basis may not be accurate on your forms, such as a 1099-B or similar brokerage statement.  Thus, you need to ensure that the cost basis is correct.  If not, and this does happen at times, you need to make an adjustment in TurboTax to reflect the correct cost basis.  

 

@frank-the-tank 

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