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Had a stock grant in November, and 5 RSUs were sold for taxes. I’m told both the income and withholding are reflected in my W2. So why has Fidelity issued a 1099b with only the sale amount? There’s nothing on there about the withholding towards taxes, so it looks like I made an additional 17k. If it’s on the W2, isn’t this reporting twice? Or should I amend the 1099b with the federal withholding I know was made at the time of the grant (that amount is visible on the receipt from the sale).#tax
The RSUs sold to cover taxes when vesting are usually on the W2 and not 1099. Your employer sells them and send the tax to the government. Fidelity shouldn't have anything to do with it. Disclosure - not a tax expert. Don't depend on my advice.
^this
Don't listen to the garbage above from ppl that don't know the system you are operating under. Fidelity sold the stock. In my case I paid cash to the broker to pay the taxes and preserve my stock, Amazon is not accounting for that in W2. You need to contact fidelity. I've seen people have issues with this call fidelity!
When Fidelity sells the stock and you get a refund, it is all shown on a W2 from Amazon.
wawY45, does that mean if a stock was sold to cover taxes and X% was deposited into my account, this is all reported in my W2?
This happens to me every year. There's a specific box on your form that Fidelity checks that says "cost basis not reported to IRS". When you fill out your taxes, you need to look up the cost basis (Fidelity will have this in transaction history) and enter it. Income and taxes are reported on your w2. The fidelity form will only report any capital gains/loss you made from the short window between when the stock vested and you sold (for me, usually a day, so only +/-1% or whatever).
Thanks for the info. So what would you do, amend the cost basis (currently set to 0) or add “Federal Withholding Amount” to that section? I can get that number from the receipt I have from the time of sale (something like 9k went to federal withholding)
Yeah, amend the cost basis. Fidelity needs to report the sale of investment for capital gains purposes, but for some reason doesn't report cost basis for RSUs, and it's just 0 on their forms. So if (example) Fidelity reports sale of RSUs as 1,005 income, you should look up and enter the cost basis as 1,000 (or whatever it was the day it vested - available on Fidelity site in statements somewhere), so that you're only reporting the capital gains of 5. The income and taxes paid (usually by sale of some of your vested shares) is reported on your W2. Note that it could also be a capital gains loss if the stock price went down in the ~day it took to sell the newly vested shares. Disclaimer: not a tax professional, but a confident random Internet stranger who's been doing this for years
Is it bad if the way that I handle this is to just not report the 1099B in turbo tax?
Yes
Am I tax fraud?
Some good info on this topic here and just pasting it here for others reference if they end up searching in blind. https://www.parkworth.com/blogs/dont-pay-tax-twice-on-rsu-sales
The RSU cost basis is not reported to the IRS, godaddy uses E*TRADE And E*TRADE provides a supplemental statement that shows the true cost basis.