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The 1099B does not show any tax withheld for RSUs sold in 2016, but the brokerage transaction details shows federal, state taxes paid. How to report this in TurboTax?

Forum|Forum|7 years ago
June 1, 2019
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My RSUs were sold in 2016. When I look at the brokerage transaction details, it shows federal, state taxes were already withheld. So I received a check for the total amount minus taxes. But the 1099B I received from the brokerage shows only the gross amount of the transaction and the federal/state tax boxes show 0.

Also, on my W2, a slightly lesser amount is given with code V in box 12B, than what is reported on 1099B.

How do I report this on my tax return in TurboTax?

TurboTax Self Employed Online

Best answer by TomYoung

As to your question "how to report this (federal, state taxes) in TurboTax?" the answer is "you don't because it's already been reported on your W-2." You had a "same day" sale of stock (vesting/sale on same day) "for taxes" and that cash was passed back the the employer, who paid the government(s) and included those amount in the various "taxes" boxes on your W-2. You can check with your payroll department.

If the broker had withheld and paid the taxes - called backup withholding either because you didn't submit a W-9 or did submit a W-9 and said you were subject to backup withholding - it would be on your 1099-B.

"Also, on my W2, a slightly lesser amount is given with code V in box 12B, than what is reported on 1099B."

I assume what you are saying here is that the proceeds on the 1099-B is greater than the dollar amount of the W-2. All that means is your employer used a slightly smaller per share "fair market value" (and reported slightly less compensation income) than you actually realized when you sold and it's no big deal. Forget about it. You'll use the Box 12 amount to determine the basis for the sale and realize a slightly higher short term capital gain. Trying to get it "corrected" amounts to pushing small numbers between "compensation" and "short term capital gain" both of which get taxed at the same tax rate.

Tom Young

T

TomYoungAnswer

Employee

As to your question "how to report this (federal, state taxes) in TurboTax?" the answer is "you don't because it's already been reported on your W-2." You had a "same day" sale of stock (vesting/sale on same day) "for taxes" and that cash was passed back the the employer, who paid the government(s) and included those amount in the various "taxes" boxes on your W-2. You can check with your payroll department.

If the broker had withheld and paid the taxes - called backup withholding either because you didn't submit a W-9 or did submit a W-9 and said you were subject to backup withholding - it would be on your 1099-B.

"Also, on my W2, a slightly lesser amount is given with code V in box 12B, than what is reported on 1099B."

I assume what you are saying here is that the proceeds on the 1099-B is greater than the dollar amount of the W-2. All that means is your employer used a slightly smaller per share "fair market value" (and reported slightly less compensation income) than you actually realized when you sold and it's no big deal. Forget about it. You'll use the Box 12 amount to determine the basis for the sale and realize a slightly higher short term capital gain. Trying to get it "corrected" amounts to pushing small numbers between "compensation" and "short term capital gain" both of which get taxed at the same tax rate.

Tom Young

T

tstaup

Thank you Tom, I had the same question about my 1099. Being as the taxes were already withheld on my w-2, do I need to even report the 1099? I am afraid the IRS will see that and want more money!