Author Topic: Filing ESPP and RSU gains, Form 1099-B  (Read 2334 times)

JumpInTheFIRE

  • 5 O'Clock Shadow
  • *
  • Posts: 97
Filing ESPP and RSU gains, Form 1099-B
« on: February 19, 2016, 09:05:23 PM »
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?

MDM

  • Senior Mustachian
  • ********
  • Posts: 11477

JumpInTheFIRE

  • 5 O'Clock Shadow
  • *
  • Posts: 97
Re: Filing ESPP and RSU gains, Form 1099-B
« Reply #2 on: February 19, 2016, 11:21:48 PM »
Thanks for that thread!  That answers some questions about my ESPP (the cost basis reflects the discounted purchase price but the disqualified dispensation is on my W-2) so I guess I will have to file cost-basis corrections for those sales.  For my RSUs, I still don't know.  I'm not even sure what the cost basis is supposed to be on those, the grant was for a specific amount vested over 4 years, but the stock price has changed quite a bit and I'm not sure if it was the price when the original grant happened or when the particular shares vested.  There was no cost basis reported to the IRS so I guess they expect me to provide it.

 

Wow, a phone plan for fifteen bucks!