RSU on 1099 and W2

[nolanm]

Hi all - some help please

Client has RSU's that were sold both by his employer and a further tranche by him personally.

The employer sold tranche is on his W2, RSU detail in box 14 as $80k. 

1099 from his broker shows an additional $36k of sales, the 1099 supplement shows adjusted cost basis of $35k. Have completed to 1099-B worksheet and added adjustment amounts so that $1k of ST gains flow through to the 1040.

Question: Do I need to further verify the $80k in his W2?

In previous filings I have seen a recon from the broker 1099 supplement which tallies up the $ proceeds in the W2. This broker does not provide such a recon and the employer is also unhelpful in providing a recon ie. how many shares sold at what price, or any other detail.

Thanks for any guidance

Nolan 

[rbynaker]

It's easy for things to get convoluted so I always reconcile them and keep a spreadsheet.  With the market volatility from the past few years there may also be wash sale adjustments floating around that nobody is tracking.

With RSUs, the W-2 income is from the vesting, it has nothing to do with sales.  What I usually see are lots such as 5 shares vested, 2 shares withheld for taxes and 3 shares delivered to the broker.  So the W-2 has the income from 5 shares but the broker only sold 3.  So I always track everything per share and follow the money.  A year-end paystub may also be helpful.

Rick

[nolanm]

Thanks Rick

With nothing else forthcoming from the employer or the broker I may just have to enter the 1099 and cost adjustment. If as you say the W2 vesting includes shares that the client was awarded, and tax was withheld, hopefully there is no additional tax due. 

[rbynaker]

Sometimes it's a matter of asking the right questions.  The employer would not have data related to sales but they will definitely have records of vesting, don't let them tell you otherwise.  Somebody calculated and added the income to the W-2.  If nothing else you can get the individual vesting reports showing income, withholding, etc.  Sometimes we're paid for detective work.  W-2 > paystubs > vesting schedules.

[nolanm]

Agreed, appreciate that