I participate in two different stock programs at work. I get granted Restricted Stock Units (RSUs) which vest over time and I participate in the Employee Stock Purchase Program (ESPP). This is the first year I have done the ESPP but I have been receiving and have sold RSUs for several years. Both programs are managed by ETrade. I never received a 1099-B from ETrade before ( have received a 1099-DIV for dividends associated with this stock), but this year I received one with the ESPP sales on it. However, it also had my sales of the RSU shares with a cost basis of zero.
As they didn't do this before when I sold RSUs I am wondering how to report it (or if I misreported it in the past). It looks like the amount of the RSUs is added to my gross income on my W-2, so if I add these sales as 1099-B entries in TaxAct (with a 0 cost basis like listed on the 1099 that ETrade issued) then I get taxed twice on the same income - once as regular income on my W-2 and once as a capital gain on form 8949. Is something wrong here or am I just not understanding the form that ETrade issued?