How to report RSU that were sold to cover taxes? I have done extensive research and I see multiple options on turbotax to do this each leading to different tax due amount

Forum|Forum|6 years ago
June 1, 2019
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My broker reports RSU transactions that were sold to cover taxes to IRS on 1099b (under box B) with cost basis 0

Now shall I show all these transactions used to witheld taxes on turbotax along with actual transactions that I did?

If yes, do I need to use the uncommon situation button and tell it that:

This Form 1099-B shows the Federal or State income taxes were withheld from the proceeds of this sale

and

The Form 1099-B shows an incorrect cost basis.

I do not add these transactions and then while I am adding my actual transactions I use the option "I have sales from an Employee Stock Plan, including ESPP, NQSO, ISO, RS, and RSU" and then in interview process use "Shares Withheld (Traded) to Pay Taxes" to provide the RSU that were sold to cover taxes.

If I am using the second option the wages are matching my W2 but then I don't get the option to tell the value at which these sell-to-cover-tax RSUs were sold ? As the form where I enter "Shares Withheld (Traded) to Pay Taxes" only has option to enter market value when the shares vested.

TurboTax Deluxe Online

Best answer by TomYoung

If the 1099-B reports the sale of shares that were for taxes then you need to report that sale. The cash from the sale of shares sold "for taxes" was passed back to your employer, who paid the government, and included those amounts in the "taxes withheld" boxes of the W-2.

Since it's a Box B sale - basis not reported to the IRS - you simply enter the correct basis as you enter the sale in the spreadsheet-like, "fill in the boxes" default TurboTax entry form. Press "Continue" when you've entered the 5 pieces on information. You are done.

(I'm assuming, of course, that you DO KNOW your correct basis for the shares sold.)

Tom Young.

TomYoungAnswer

Employee

(I'm assuming, of course, that you DO KNOW your correct basis for the shares sold.)

Tom Young.

jkshar2005Author

Employee

1099b does not mention that sale of shares is "for taxes" it just shows the transaction which my employer did to cover the taxes. But when do we use the uncommon details option and then again the "Shares Withheld (Traded) to Pay Taxes" box in uncommon details area ?