Solved

Question regarding company RSU's federal tax withhold shown on Form 1099 B

Forum|Forum|4 years ago
April 5, 2022
2 replies
0 views

The broker sold some shares of stock to cover the tax, I checked my tax documents, found there is a value Federal Income Tax Withheld for Form 1099B box 4(value A), and a Federal Income Tax Withheld for W-2 box 2(Value B).

From broker's record for that sale, there is Federal tax value that is also found contributing to value B according to company's pay detail history, and another withholding value that is the same as value A.

Does this mean I need to report value A in Other Income Taxes Paid in 2021?

Best answer by mglauner

For this particular 1099-B that has Federal Tax Withheld in Box 4, don't choose the Summary option. Enter this single sale so you can enter the Federal Tax amount (you may need to correct the Cost Basis on this 1099-B for RSUs also).

You can still use the Summary option for other types of sales reported on 1099-B. Form 8949 will include your Summary totals, plus the individual single entry for this 1099-B.

Click this link for more info on Entering RSU Stock Sales.

H

HelenC12

No, you don't report Value A in Other Income Taxes Paid in 2021. Just enter the 1099-B Form which has Federal Income Tax (FIT)withheld in Box 4. That tax amount will carryover to Form 1040, Line 25b, FIT withheld from: Form(s) 1099.

Since the gain on that stock sale was included as income on your W-2, to avoid double taxation:

You will need to change the stock basis on the date of the sale, to the price on the date of sale.
The result is zero gain or a minor loss due to brokers commission/fees.
The IRS will expect to see that information on your tax return.

To enter your 1099-B form, see Where do I enter a 1099-B?

For additional information, see the TurboTax article: Non-Qualified Stock Options.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

W

wchen283Author

@HelenC12 I got what you said so what I asked is should I put it into line 25c of Form1040, and you said it should go to line 25b by entering for Form 1099 B. But when I'm using the desktop version, I can only add box 1d and box 1e? Even I have imported the 1099 B form, the line 25b still hasn't shown any values. Should I manually enter value to line 25b of Form 1040?

H

HelenC12

No, don't manually enter a value in Form 1040, line 25b. This will be an override and you won't be able to e-file.

I created a test 1099-B entry form in TurboTax CD\Download (Desktop).

On the Tell us about your 1099-B screen, I entered Box 1a through Box 1e.
On the Any of these less common items on your XXX 1099-? screen, there is Box 4, Federal tax withheld.

If all else fails, you could enter the amount as an estimated tax payment. See Where do I enter my estimated tax payments?

To update or edit information you imported, click here.

The important thing is to have the total amount of income taxes paid reported on your tax return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

M

mglaunerAnswer

For this particular 1099-B that has Federal Tax Withheld in Box 4, don't choose the Summary option. Enter this single sale so you can enter the Federal Tax amount (you may need to correct the Cost Basis on this 1099-B for RSUs also).

You can still use the Summary option for other types of sales reported on 1099-B. Form 8949 will include your Summary totals, plus the individual single entry for this 1099-B.

Click this link for more info on Entering RSU Stock Sales.