Following is my situation (changed the numbers for simplicity):

ABC Inc vested 120 RSUs in 2018, in which 20 RSUs were sold by my employer (price of the share $10, and $20 trade fee) for the tax purposes. Now I have 100 RSUs which I never sold.

I got a 1099-B form from E*Trade, and I see the cost basis is $0. When I enter this information in TurboTax, I see my refund go down. Why is it going down? I already paid the tax with those 20 RSUs.

Please tell me what will be the correct cost basis for the above situation.

  • Just to clarify: you got a 1099-B for the 20 shares that were automatically sold at the time of vesting to cover taxes and vesting expenses? I've never seen that. – prl Apr 14 at 19:17
  • Assuming that the fair market value of the shares at the time of vesting was reported as income on your W-2, then you're correct that the basis of the shares should be the fair market value at the time of vesting. You can adjust the basis on Form 8949 if the value reported by the broker is incorrect. – prl Apr 14 at 19:19
  • @prl: yes I got 1099-B for from E*Trade for those 20 shares. and how do I know that those were reported in W-2 ? – user3470629 Apr 14 at 19:26

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