[kyteland]

Something that commonly happens is that your brokerage sent you the cost basis for those sales at $0 on your 1099 form. There's typically an adjusted cost basis buried on their website which is what actually needs to be entered into your tax software as the cost basis, not $0.

So say you had $50k in stock vest and you sold $10k to cover the income tax. It's likely that when you import your 1099 that the cost basis is set to $0 on the $10k which if treated as a gain is a $2k-$3k tax bill. But if you find the adjusted cost basis and enter it the taxes drop to essentially $0.

So if you've experienced a huge, unexpected tax bill from RSUs vesting, go back and look at your tax return. If you see a $0 cost basis on the form then you overpaid. It may not be too late to amend your return and get it back.

[jjav]

> Something that commonly happens is that your brokerage sent you the cost basis for those sales at $0 on your 1099 form.

Can't emphasize this enough. Etrade does this, which is maddening. The form they send has the wrong numbers (zero cost basis).

There's another form buried in their website where you can get the actual cost basis. Must use that one, otherwise will massively overpay taxes.

Why Etrade why.

[PopAlongKid]

It's not Etrade, it is the IRS instructions for Form 1099-B, Box 1e (cost basis).

"If the securities were acquired through the exercise of a compensatory option, the basis has not been adjusted to include any amount related to the option that was reported to you on a Form W-2."*

[sublatio]

Yes, you likely will get a supplemental document to your 1099 from etrade (or whoever) with the correct cost basis.

[JoshTko]

This.