Was this a sale of employee stock question in TurboTax Premier, I just need clarification.

[almargahi]

Hello all -

I have RSUs through my employer, and in 2022, I sold some of the vested shares of the RSUs, but I have NOT sold any ESPP shares (I do participate in ESPP but never sold any). As far as I know, when I enter these transactions and get the question 'Was this a sale of employee stock?' - I answer NO since I did not sell any ESPP but again the brief description below the question in TT throws me off since it does include RSUs 'needing special handling'. Also, after selecting no, and clicking "Continue" - I get asked for the "Less common" options, where I check "The cost basis on my statement is incorrect", I then put the adjusted cost basis from my supplement doc from E-Trade. 

Now, is the above all correct, or do I still have to click on 'Yes' that it was a sale of employee stock even though there are no ESPP sale transactions? Please note, for RSUs, my employer does sell a few shares to cover taxes, so the 'income' is reported in my W-2. 

Thanks in advance. 

[almargahi]

Anyone, please? 

[chantal4]

You should answer Yes to the question if you sold any employee stock. The RSU's sold to cover, are just sold on your behalf, but technically you are selling them.

Then you will need to edit each line (there may be multiple sales) and in those steps you enter the adjusted cost basis and other things. A pain in the butt, but you need to do that for each "sale".

[almargahi]

But this kind of contradicts what TurboTax asks in the interview questions if I answer 'Yes'. Basically, all they are referring to is 'Employee Stock Plan", and I just sold Restricted Stock Units, not any 'plan' shares (ESPP).

[chantal4]

RSUs are part of your company "plan". If you read the detailed help on that page it may become more clear.

[almargahi]

ouch. My last year taxes I chose ‘No’ then I corrected the cost basis on the next less common screen. Do I need to amend my return? :( 

[chantal4]

I don't know. Probably better to ask a tax expert!

[DavidD66]

You do not need to amend your 2021 tax return.  Answering "No" when asked "Was this a sale of employee stock?" will not cause any problems if you make the proper adjustments yourself.  Answering yes does not change how the transaction is reported to the IRS, it just results in different screens and questions in the interview section for reporting your transactions.