What does it mean to sell to cover stock options

Perhaps they are carrying to only 2 decimal places when calculating my RSU earnings, but carrying to more than 2 when calculating the offset giving me a slightly bigger offset deduction than the reported RSU earnings. Lot 1. I paid cash to cover the tax of these shares so shares are in my brokerage account. Lot 2. ARGH why does this have to be so tricky! Wash sale covers the day of sale and 30 days before and 30 days after. Did you buy ESPP shares in that timeframe? Only the actual purchase at the end of the six-month ESPP purchase period counts as purchase.

If the sale does fall within 30 days of purchase, I would be conservative and count it as wash sale.

You just postpone it to the ESPP shares. I had some of my RSUs vest last year. At the time of vesting, I paid the necessary taxes using money in my brokerage account mistake, I am regretting now :. I was checking my W2 and I do not see the taxes that were taken out of my account included anywhere. I checked all my paychecks since the vesting date and I do not see the extra taxes included in any of them. Check your paystubs both before and after the vesting date.

Thanks for continuing to post and help. From what I read in your posts, if there is no sale it is reported in your W2 and need not be reported elsewhere until it is sold. I said several times in the comments already — stay away from the confusing help provided by TurboTax. Go straight to spreadsheet-style entries.

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Thanks for writing back. You are the hero of the hour! This seems a situation of something that is so simple, it is confusing. Rose — It is correct you only report on Schedule D when you sell the shares. You will have to print out the returns from the two software programs you are using and see where the difference comes from.

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Excellent article. This one page cleared all my questions regarding RSUs and reporting the transactions. I was given the option and opted to sell-to-cover.

The company sold 77 shares leaving me with I have not sold any more shares from this grant. I have since left the company and have been unable to get information from the plan administrator. My question is do I owe any more taxes? I just wondered why you consider it necessary to file a Schedule D for the sell to cover stock sold at the time of vesting.



These stock are sold by my company, and although I agree that they are sold on my behalf, I have never received a B form related to their sale, so why would I need to account for them in my return? I kept the shares and then sold them in January Can I record a loss on this? If so, is this considered a short term capital loss or a long term capital loss?

In our example, they sell 40 shares on your behalf, i. I appreciate the help you are providing. My situation is somewhat similar to your example, with some differences. I have 4 separate share releases, each with own vesting date and closing price. However, ALL of my shares were sold at once and I have only 1 figure for the amount withheld for taxes.

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Do I divide the figure I have among the lots, keeping the same ratio as number of shares in each? My employer awarded me a stock bonus and an automatic STC transaction happened leaving me less shares. If the stock price were to multiply by 10 in a year would I have been better off paying my own taxes up front and hold all the shares to sell at the high price and pay all the taxes at that time? Your concise, clear explanations answered all my questions.

And, entering the information correctly instead of the mess I had before I read this resulted in a couple of thousand dollar difference in my taxes in the good direction! Cost basis always messes me up, and I forgot to multiply it by the number of shares oops. Thanks in advance. I have a similar issue to others. I get an error during final review because my W2 number for RSU doesnt match the vested and sold shares. How do I rectify this? This increases my taxes! It handles the RSUs just fine.

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If someone gifts me a copy of TurboTax Premier, I will figure out how to please it in the step-by-step interview. Hi TFB Great site. I have been following your articles since last year on RSU- decompiled…etc. My employer sells some RSU to cover for taxes. I sold some and held on to others.

All RSU are accounted for in my W2 income. Kevin — I played with TurboTax online. If you sold some and kept some, when it comes to the page where it asks you how much was included in the W-2, just type the same number TurboTax has.

How do I exercise my stock options?

Your answer: all of it. The additional income for the unsold shares is not related to the sale. Hi TFB; I have tried your suggestion above i.. In doing so the Taxes increases. I can use HRBlock deluxe to do the same. I was issued 1, shares in September As such I was issued all my shares. The total FMV of shares was included in my taxes. Subsequent to this, another set of RSUs vested in March My employer reduced my shares by the number of shares I owed previously for the September issuance for taxes plus the shares for taxes in in the current year.

There was no brokage firm involved, and it was a net issuance. I was supposed to receive 3, shares but my shares were reduced to 1, for first issuance, for second. Thank you again for this wonderful site and your time answering questions. I have been receiving RSUs for a few years and can now follow and understand them in the 3 places they appear on my paystub — in the earnings section, in the taxes section, and in the after-tax deductions section, where the RSU offset shows up. This refund figure is a negative number unlike the RSU offset figure, which is always a positive number.

Can you tell me what this is? What does it mean in terms of tax treatment when 1 the RSUs vest and 2 I later sell the shares that actually come to me?

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My employer does a sell-to-cover whenever RSUs vest, and I get a reduced number of shares from what the grant was. A question — does the share price used when the grant is first declared matter for taxes in any way i. Would love a link to tax treatment for Employee Stock Investment Programs that include discounted purchase if you have one!