RSU "sell" vs "sell to cover"

Forum|Forum|1 year ago
March 22, 2025
1 reply
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Hi,

my question is with reference to the "Sell" option of RSUs upon vesting. I am a little more familiar with "sell to cover" but not "sell".

I instructed my employer to "sell" upon vest. They sold all (say) 100 vested shares at (say) $5/share for a total "proceeds" of $500 and reported the $500 (box 1d) on my 1099-B as noncovered security not reported to IRS. The cost basis field (1e) is empty for this txn. I rec'd about $380 (into my bank) of the $500 and remaining held for taxes.

Since the proceeds of $500 shows up on the 1099B, how do I report this in Turbotax. Since taxes have been paid and the $500 has been reported on my W2, can I just ignore this sale and not report it under the 1099B section of Turbotax?

thank you.

ThomasM125

You do need to enter the investment sale information off of the Form 1099-B in TurboTax. The cost of the shares will be what was included in your income from their vesting as reported on your W-2 form plus any additional cost to you if applicable. You will see an option to enter than when you enter your Form 1099-B in TurboTax. Choose the option that says the cost basis is incorrect or missing on my 1099-B form and then you can enter the correct cost basis: