Entering RSU Information into Turbo-Tax

I have searched the forums, but can't seem to come across the answer, for what I'm guessing is a pretty simply operation in Turbo-Tax.

In prior years I was Granted RSU's, Some Vested in 2021.

In 2021ONLY shares to Cover Taxes were Sold, the balance simply transferred to Stocks that I have done nothing with.

How Do I enter this in Turbo-Tax, I am using the desktop Version, As I understand there may be some differences in Online vs. Desktop.

‎February 15, 2022 4:07 AM last updated ‎February 15, 2022 4:07 AM Connect with an expert

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1 Best answer
Accepted Solutions Expert Alumni

Entering RSU Information into Turbo-Tax

For this transaction, you only want to list the cost basis of the shares you sold. Since they were exercised and sold on the same day, the cost basis and proceeds should be just about the same number. You may have a small loss if any transaction fees were charged. In your example, the $50,000 is the cost basis of all the shares that were exercised. Since you only sold 25% of them to cover taxes, the cost basis is 25% of $50,000 or $12,500. The 75% you are holding does not need to be reported anywhere in the stock sales section until the year you actually sell them. When you do sell them their cost basis will be $37,500, 75% of $50,000.

The sales category should be listed on your 1099-B. It is definitely short-term. Covered or not is whether the basis is reported to the IRS. Usually, it is a short-term covered transaction.

‎February 15, 2022 8:00 AM 15 Replies Expert Alumni

Entering RSU Information into Turbo-Tax

Most likely the stock sale was included as income on your W-2 and reported on Form 1099-B. To avoid double taxation:

To enter your 1099-B form, see Where do I enter a 1099-B?

For additional information, see the TurboTax article: Non-Qualified Stock Options .

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‎February 15, 2022 5:04 AM

Entering RSU Information into Turbo-Tax

Do I Enter in TT in the 1099B Section, as shown in Pic.

If So using an Example as.

1000 shares granted

250 Sold for Taxes

Share Price at time of sale $50

Date Sold 01 Mar2021

What would go in 1d, 1e, and Sale Category, Assuming that I sold No shares other than those to cover Taxes?

‎February 15, 2022 6:20 AM Expert Alumni

Entering RSU Information into Turbo-Tax

Yes. Although 1000 shares were granted, they were not all sold. The only information that should be entered here is the actual number of shares that were sold. The value on the vesting date of those same shares will be your cost basis (check your W-2 and divide that total by the number of shares received on the vesting date). The amount reported as taxable income on your W-2 becomes your cost basis for all vested shares.

  1. When you receive an RSU award, you don't actually own the stock until it vests. Accordingly, there is nothing to report at the time of the award.
  2. Once the stock has vested, the fair market value of the stock gets reported as ordinary income, usually in box 1 of your W-2. In some companies, employees can earn dividends from unvested RSUs — these are also reported in box 1 of their W-2 forms.
  3. After vesting, you own the stock outright. Should you later sell those shares, you'll get a 1099-B which will report the gain or loss from the sale.

Please update here if you need further assistance.

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‎February 15, 2022 6:42 AM

Entering RSU Information into Turbo-Tax

In your example you stated that you only sold 250 shares for taxes. Yet your screenshot indicates that you sold 1,000 shares. Did you copy these figures from an actual 1099-B?

Also, your per-share cost basis is the compensation you received at vesting (which is reported on your W-2) divided by the gross number of shares you received, including those sold for taxes.

**Answers are correct to the best of my ability but do not constitute tax or legal advice. ‎February 15, 2022 6:50 AM

Entering RSU Information into Turbo-Tax

So Would this be accurate using these Numbers? I’m just confused on the Sale Proceeds, and Sale Category (I think)…

1000 shares granted

250 Sold for Taxes

Share Price at time of sale(For Taxes) $50

Date Sold 01 Mar2021

Box1a Description: Company ABC

Box 1c Date Sold: 01Mar2021

Box1b Date acquired: 01Mar2021

Box 1d Sale Proceeds: $12,500

Box 1e Cost or other Basis: $50,000

‎February 15, 2022 7:22 AM

Entering RSU Information into Turbo-Tax

Sorry the Screenshot was just to show the boxes in TT, it was not related tot he example numbers I presented, Sorry to add tot he confusion.

‎February 15, 2022 7:24 AM Expert Alumni

Entering RSU Information into Turbo-Tax

For this transaction, you only want to list the cost basis of the shares you sold. Since they were exercised and sold on the same day, the cost basis and proceeds should be just about the same number. You may have a small loss if any transaction fees were charged. In your example, the $50,000 is the cost basis of all the shares that were exercised. Since you only sold 25% of them to cover taxes, the cost basis is 25% of $50,000 or $12,500. The 75% you are holding does not need to be reported anywhere in the stock sales section until the year you actually sell them. When you do sell them their cost basis will be $37,500, 75% of $50,000.

The sales category should be listed on your 1099-B. It is definitely short-term. Covered or not is whether the basis is reported to the IRS. Usually, it is a short-term covered transaction.