I received a 1099B for RSU tax sale, but didn't sell the RSUs. How should I report this?

Etrade reported the tax sale of my RSUs on a 1099b.  I didn't sell any of the vested shares.  TT is requiring I enter sale information to report RSU sales.  Since I didn't actually sell any, how can I report this?

Ex.  Etrade reports:
box 1a - 1/3/11
box 9 - company cusip 70 shares price 5
box 2 - 350
box 6 - noncovered
All other boxes blank (1b, 3,4,5,15) or not shown

This was the tax sale.  I don't think I should get a 1099b for the tax sale, but I did.  What should I do?  I didn't sell any of the shares from this lot that vested.


19 people found this helpful

Think of the RSU grant as a cash bonus. You were granted shares (at $20/share for example) but they sold 70(?) to cover withholding, etc. taxes. The income and the $350 of taxes are included on your W-2...you already paid taxes on the income. So the remaining shares were bought with after-tax dollars. Don't report any shares sold. TT will make you crazy if you try to go down that path AND it's just not necessary. Keep it simple.
Was this answer helpful? Yes No
1 additional answer

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community