Total gain in ETrade release confirmation is not matching Box 14 RSU of W2

[johnsantaclara1]

I request your advice:

I entered all my ETrade sales of RSUs from my current company and ESPP sales using form 3922 from my previous company in TurboTax and ran into few questions regarding W2 or reporting of ordinary income
1) For ESPP sales from my previous company that I left in 2022, I don't have W2 for that for 2023. In the screen "Tell us about your ESPP sale" : I chose " An emplyoer without a W-2 on this return" and I entered the name of that company. Hope that's ok.
2) For RSU sales of my current company: I see a screen "Let's review your employee stock plan results" in TurboTax which shows the W2-disposition amount (x) which matches the total gain reported in "View confirmation of release" ETrade statements of all my 2 lots of RSU sales. But that amount seems to be 1/3rd of the value in Box 14 (Other) RSU category of my current company's W2. Please let me know if I am missing anything. Thank you!

[ThomasM125]

I don't fully understand what you mean but I can explain how the process works so that may help you determine if you are reporting things correctly. On your W-2 form, the value of the restricted stock units (RSU's) will be reported as wage income in box 1 in the year that they vest, assuming you don't pay anything for them. If you know how many shares vested, you can divide the RSU income in box 1 on your W-2 form by the number of shares vested to get the cost per share. You multiply that by the number of RSU shares sold during the year to get the cost basis of shares sold. You compare that to the cost basis reported on your Form 1099-B reporting the sale of RSU's and adjust that cost basis accordingly.

For the employee stock purchase plan shares (ESPP), you would do a similar exercise. Find the income amount associated with the discount you received when you acquired the shares as reported on your W-2 form and divide that by the number of shares acquired to get a discount cost per share. Multiply that by the number of shares sold and you will have the discount portion of the cost of the shares sold, which you can compare to the cost basis reported on your Form 1099-B to determine if you need to adjust that cost basis to include the discount, which is often omitted.

So, you need to look at your W-2 form to identify what is the employee stock income and make sure it is included in the cost basis reported on the Form 1099-B entry. Often the Form 1099-B will simply report the price you paid for the shares times the number of shares sold, and ignore the income reported on the W-2 form, which also must be included in the cost of shares sold as reported on the Form 1099-B.

[johnsantaclara1]

Thank you for your answer. I was able to find the issue and solve it. If any one else is facing the same issue: It was because I had assumed that importing by connecting to "ETrade from Morgan Stanley" from Turbo tax will get all the forms of all my sales in Morgan stanley and E*Trade that had merged in 2023. I realized that my assumption was wrong because Morgan Stanley at Work account had another 1099-B with other sales which were not imported by importing from "ETrade from Morgan Stanley". So I had to manually download my 2nd 1099-B from Morgan Stanley at work account as Turbo Tax could not connect to that account to import. Now my W2-disposition shown by Turbo Tax is matching the box 14 entry in my W2. Hope that helps others. Thank you.