RSU sale - ordinary income reported and compenstation income

[janelnilson]

I sold some RSU's this year and inputted all the data into turbotax, and I am concerned that I may not have done things correctly.  First, I wasn't sure what I should have inputted for the compensation income.  I have held the RSU's long enough to qualify as long term transactions, but should I still enter in some amount as compensated income?  And if so, how do I know how much of it I need to add - all or only part?  Secondly, I have listed on my 1099B not only the proceeds and adjusted cost bases, but also the ordinary income.  I am assuming that the amount in this column mean that I have already been taxed by this amount and it is listed on my W-2.  Is this correct?  If so, I need to somehow input that into the program so I don't get taxed on it again; could you please tell me how I can enter in this information?

[MarilynG1]

If you have entered the 'Adjusted Cost Basis' from your brokerage statement, that is all you need to do.

You are correct that the 'ordinary income'  (difference between what you paid for the shares and FMV at vesting) is reported on your W-2.

You don't need to enter it anywhere else. 

Click this link for more detailed info on Reporting RSU Sales.

[janelnilson]

Thank you, this makes sense.  The part that confuses me is when I view the Summary of Compensation Income from employee Stocks form, the amount in part II f (amount included in W-2 does not match the total amount that is listed on my 1099B under ordinary income reported.  Shouldn't both of these match, or at least be pretty close?  The amount listed is only 20% of what it stated on my 1099B.  These amounts are close to matching when I view my ESPP and NQSO, so it doesn't make sense why they wouldn't also match for the RSU's.  

[AmyC]

Thanks for the additional information! Your employer actually knows what you were compensated. Some companies give the information to the broker, some don't. Some only give part of the story. You want to use the compensation that was reported on your w2, whichever year plus the expenses of sale. If for example, you got 100 RSU shares and only sold 50 sh, then only half of the w2 compensation would be used. The end result should be the sales price minus (compensation +sales expenses) = gain/loss.

The IRS puts basis tracking on you, not the broker or employer. I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your  carryover information, and proof of your basis in your various investments. You must keep tax records  from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses / carryforwards/ basis.