Question

Entering RSUs on Turbotax

Forum|Forum|6 years ago
February 24, 2020
2 replies
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Could you please advise on step-by-step instructions on how to enter RSU sales on the online version of Turbotax for the 2019 tax year? It seems like the process looks slightly different every year and throws me off. In my specific example, after I imported my 1099-B form into TT, I get 3-4 RSU sales that show up as Box X checked and are not actually part of the 1099-B form. My brokerage did include these sales as a separate statement. I know what date the RSU vested and what date I sold a certain number of RSUs and from the statement I gather the gross proceeds from the sale as well as there is a cost basis reported on the statement. The cost basis shows up as 0 in the imported sale into TT. So, I need to correct the cost basis. Please advise if I should go through "I need help determining the cost basis" or is there an easier way to just report the correct cost basis that I got from my brokerage. If I go through "I need help determining cost basis", I end up in a screen where I am asked for how many RSUs vested and how many were withheld for taxes. I am not sure about where to find this last bit of information, and it is not clear if it is even necessary to provide. Please help. Thanks.

TurboTax Premier Online

RobertG

You need to know how many RSUs vested and how many were withheld for taxes in order to determine your basis.

You should be able to find the grant information on your 1099-B form or your consolidated statement. If you can’t find this info, contact your brokerage or your employer's stock plan administrator.

To report RSU sales in TurboTax:

When you enter you 1099-B information you will be asked: 'Do these sales include any employee stock? This includes ESPP, RSU, RS, NQSO, and ISO' Say yes.

Then you will be asked 'What type of investment did you sell?' Select 'Restricted stock units'

Check the box that says 'The cost basis is incorrect or missing on my 1099-B'

Then select 'I need help figuring out my cost basis'

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K

K-Girl

You say: When you enter you 1099-B information you will be asked: 'Do these sales include any employee stock? This includes ESPP, RSU, RS, NQSO, and ISO' Say yes.

However, I'm not getting this question. Is there a resource that walks me through to show me how I get this question to come up?

T

TomD8

Cost Basis is 0 for sell-to-cover in 1099-B

Should this be adjusted manually to equal the Proceeds?

Even if I delete the import & manually enter, I still have the same issue, which is "What is the cost basis?"

I didn't sell any, they were sold to withhold taxes (all proceeds went to IRS and I presume my W2 box 2 includes this total proceeds). By reporting this as gain with cost basis 0 - makes it look like you are paying taxes again.

@gb1 —

“Should this be adjusted manually to equal the Proceeds?“

Yes. Since the shares were sold for taxes on the day of vesting, the capital gain is zero and the proceeds are accounted for on your W-2.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

J

jamie-d

Disclaimer: I am not a tax professional.

TLDR: The easiest way I found to find adjusted cost basis with sales that have 0 in the cost basis, like RSU or ESPP, is to use supplemental information supplied by the stock broker.

See if your bank or broker (or administrator) provides a supplemental document for your stock plan. This will have more details about each transaction such as "adjusted cost basis"

I entered each sale manually and indicated that the sale was for RSU/Stock Plan using the prompts.

With this doc it was very easy to select "I need to adjust my cost basis" and then refer to the supplemental doc for each sale to enter the adjusted cost basis.

Probably a good idea to verify the numbers in the supplemental info with the calculations mentioned in above posts, but if you trust your broker's Information systems , and the supplemental info, using the form saved me a lot of time and headache.