Entering RSUs on Turbotax

Forum|Forum|6 years ago
February 24, 2020
2 replies
0 views

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'

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

shanku98Author

Thanks Robert! Is the information on number of RSUs vesting and withheld for taxes used to calculate the cost basis? Following is the difficulty I am having. Let's say I had lots called A and B vest on March 1 2019 (let's say A was granted in 2017 and B was granted in 2018), and I sold "a" RSUs on September 1 2019. In my trade confirmation or consolidated statement from my brokerage, I only see sale of "a" RSUs without any mention of which lots they belonged to (A or B). So, I am not sure which lot am I supposed to use to determine RSUs vested and withheld for taxes. Can I use either, since the "acquisition" date would anyway be March 1, 2019 and the cost basis per share would be based on the stock price that day?

DianeC958

Yes, all of the shares you received as RSUs are used to calculate the cost basis.

The RSUs do not belong to you until the vest. So your vested date is March 1, 2019 for both lots it does not matter if they were sold from lot A or Lot B.

Yes, the cost basis is the Fair Market Value on the date the RSUs vest.

When your shares vest your employer calculates an amount of compensation for those shares, and reports that in Box 1 of the W-2, so you're going to pay taxes on that compensation.

You need to report the sale of the shares and put in the cost basis so you are not taxed on the sale of the shares twice.

@shanku98

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

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.