Your broker may report a $0 cost basis on RSU shares. See how much tax that could cost you if you do not correct it.
Enter a number of shares and prices greater than zero.
Tax you could overpay by trusting the 1099-B
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| Income already taxed at vest (on your W-2) | — |
|---|---|
| Sale proceeds | — |
| Gain on your return if you trust the 1099-B | — |
| Your actual gain | — |
| Tax if you trust the 1099-B | — |
| Tax with the correct basis | — |
| Double tax (overpayment) | — |
Tax on this sale
The fix is to report the correct basis on Form 8949 and keep your vesting confirmations as support.
This calculator is an illustration for general educational purposes and is not tax, legal, or investment advice. It assumes all shares were sold at one price, that your correct basis is the stock price on the vest date, and that the rate you choose applies to the whole gain. If your correct result is a loss, the calculator shows no tax on it and does not model how capital losses offset other income. State tax is not included. Check your broker's supplemental statement and your vesting confirmations for your actual numbers.
When RSUs vest, the value of the shares is added to your W-2 and taxed as ordinary income. That value becomes your cost basis. But brokers are not permitted to include that compensation income in the basis they report on Form 1099-B, so for RSU shares it often shows $0 or is left blank.
If you, or your tax software, take that basis at face value, the full sale price looks like a capital gain. You end up paying capital gains tax on money you already paid ordinary income tax on.
The fix is to report the correct basis on Form 8949. Your broker's supplemental statement often shows the adjusted basis, but not always, and it is worth checking against your vesting confirmations.
Book a free 15-minute call and we'll look at what your broker reported.
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