For anyone using H&R Block software instead of TurboTax, the RSU adjustment is under "Investment Income" → "Stocks, Mutual Funds, Bonds, Other" → then when entering the 1099-B, there's an option that says "I need to adjust my cost basis." Select that and enter your W-2 amount. Made this mistake my first year with RSUs and had to pay an extra $1,200. Never again!

This is exactly why RSU taxation confuses so many people! You're absolutely right that it feels like double taxation, but you're not actually being taxed twice - it's just a reporting mismatch. Here's the key point everyone's touched on: your cost basis for tax purposes is the $5,200 that was already included on your W-2 as income, not the $0 shown on the 1099-B. When you adjust this in your tax software, you should see your refund go back to the expected amount. One thing I'd add - make sure you're looking at the right tax year. Since you mention 2023 RSUs, ensure the W-2 income and 1099-B sale are both from the same tax year. Sometimes there can be timing differences if shares vest near year-end but sell in January. Also, keep your vesting documentation! Your employer should have provided details showing the exact vesting date and fair market value. This becomes your cost basis and proves the adjustment is legitimate if the IRS ever questions it. The adjustment is standard practice and the IRS expects it for RSU sales. Don't stress about it looking suspicious - this is one of the most common stock compensation tax adjustments.

Has anyone else noticed that TurboTax seems to handle RSUs differently this year? Last year I had no problems but this year it keeps throwing errors even though my situation is exactly the same. Is there a specific version of TurboTax that handles RSUs better? Currently using Premier.

I've been dealing with RSU issues in TurboTax for years and there's actually a specific workflow that usually fixes the "unaccounted shares" error. The key is making sure you enter everything in the right order: First, enter your W-2 completely (this includes the RSU income in Box 1). Then when you get to the investment section, enter your 1099-B transactions but make sure to check the box that says "This sale was already reported as income on a W-2 or 1099-MISC" for the shares that were sold to cover taxes. The critical part is in the cost basis adjustment - you need to enter the fair market value on the vesting date as your cost basis for ALL the shares (including the ones sold for taxes), not just the ones you kept. TurboTax gets confused when people only adjust the cost basis for the shares they kept. Also double-check that your total vested shares (1300 in your case) equals sold shares (672) plus delivered shares (628). Sometimes there are small fractional shares that get missed in the count.

According to the IRS website (https://www.irs.gov/individuals/get-transcript), the different transcript types update on different schedules. The Account Transcript is typically the most up-to-date and accurate reflection of your return status. If that shows your return was filed, you should be good. The Wage & Income Transcript can lag behind by several weeks during busy filing seasons.

I experienced this exact same issue last year! It's actually pretty normal - the IRS has multiple database systems that don't sync up in real time. Your account transcript is the authoritative source, so if that shows your return was filed, you're all set. The wage transcript system runs on a different update cycle and can take 2-6 weeks to catch up, especially during peak filing season. Since you mentioned needing the refund for your husband's PCS move, I'd recommend checking your account transcript for processing codes like TC 150 (return posted) and TC 846 (refund issued). If you see those, your return is definitely in the system and processing normally despite what the wage transcript shows.

I'm also stuck with cycle code 0705 and filed in late January! It's reassuring to see so many others in the same boat. From what I'm gathering from everyone's responses, it sounds like Thursday transcript updates are key for our cycle code. I've been checking randomly throughout the week, but I'll focus on Thursday mornings going forward. The waiting is definitely stressful, especially when you have expenses lined up like your home repairs. Fingers crossed we all see some movement soon - this community has been incredibly helpful in understanding what's normal vs. concerning!

I'm in the exact same situation with cycle code 0705! Filed on January 30th and have been checking my transcript obsessively. After reading all these responses, I feel so much better knowing this is normal for our cycle code. I had no idea about the Thursday update pattern - I've been wasting so much time checking randomly throughout the week. It's also really helpful to know what codes to look for (especially that 846 code everyone mentions). I'm dealing with a similar situation where I need the refund for some urgent car repairs, so the waiting has been pretty stressful. But seeing that other late January 0705 filers are starting to get their DDDs this week gives me hope! Thanks everyone for sharing your experiences - this community is incredibly supportive.

Have you considered that your Form 2553 might have been filed late originally? There's a specific rule that Form 2553 must be filed either within 2 months and 15 days of the beginning of the tax year the election is to take effect, OR at any time during the tax year preceding the tax year it is to take effect. If you missed this deadline, you might need to request relief under Revenue Procedure 2013-30, which allows for late S corporation elections. This involves attaching a statement explaining why you had "reasonable cause" for filing late.

I'm dealing with a very similar situation right now with my 2022 return. The IRS initially accepted my 1120-S but then sent a rejection letter months later claiming they had no record of my S-corp election. What's frustrating is that I filed Form 2553 well within the deadline and have the certified mail receipt. One thing that helped me understand what happened was requesting my Entity Control Document (ECD) from the IRS Business Master File. This shows exactly how they have your business classified in their internal system versus what your actual filings indicate. You can request this by calling the Business & Specialty Tax Line or including it in your written correspondence. In my case, the ECD showed that someone had manually entered my business as a "disregarded entity" (single-member LLC) even though my formation documents clearly established a corporation. This was purely a data entry error on their end. I'm now working with a tax attorney to file a formal protest of the rejection along with all supporting documentation. The key seems to be proving that any classification error originated from IRS processing mistakes rather than incorrect filings on your part. Since your business is dissolved, you might want to act quickly as there are time limits on how long you can dispute these issues. Have you tried requesting your complete business file from the IRS to see exactly what they have on record?