How to report RSU sale-to-cover 1099B form?

Forum|Forum|3 years ago
March 3, 2023
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My employer sold some RSU to cover taxes when the RSU vested. I received a 1099B form with two line items. none shows any Date acquired. There is a date sold (different on the two lines), a proceeds amount, and it shows zero federal tax withheld. There is a check in box 5 indicated they are non-covered securities. I am assuming I should enter them separately in Turbotax. There is no information on cost or other basis, type of gain or loss, and nothing in box 12 "check if basis reported to IRS".

Should be considered short-term or long-term basis?

TurboTax Premier Online

Mike9241

use the date sold as the date acquired. its the income that was added to your w-2 for each stock unit you received that is your cost basis

say $100,000 was added to w-2 as income for the RSUs. you got 1000 units (so the tax basis is $100 each) since sale seem s to have occurred on the same day as they vested, there should be virtually no gain or loss except possibly for brokerage fees. anty withholding taxes taken from the sales would be on your w-2.

elodiegoodman1Author

Just to clarify: are you saying this does not affect the amount I owe in taxes?

Should I enter the 1099B line items as a short or long-term?

Actually I received the 1099B after filing my taxes, so I am now trying to amend my return to include this 1099B. Does what you are saying imply that I do not need to amend my return, if it was simply a sale-to-cover with no gain/loss?

I am not sure if anything was added to my W2 to reflect this amount. Would it be shown separately on the W2?

Thanks for your help!

GeorgeM777

If the sale you reference in your post relates to shares sold to cover tax withholding, then it probably does not affect what you owe in tax and therefore, no amendment of your tax return is necessary. However, there could be a situation where you might have to report the shares sold to cover if the sale resulted in a gain or loss. The only way to know whether the shares sold to cover resulted in a gain or loss would be to compare the sale price with your cost basis. The cost basis is the value of the RSUs on the day they vested. Generally, RSUs that are sold to cover do not result in a gain or loss for the employee because the sale occurs on or about the same time as vesting.

Yes, the RSU compensation amount may be on your W-2. If you have your W-2, check to see if there is an amount in box 14. Employers may use box 14 to report the value of RSUs. The amount in box 14 will already be included in box 1 of your W-2 so you don't need to report the amount, if any, in box 14.

@elodiegoodman1

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