Why is my Long term capital gains tax for RSUs calculated at 20% when I'm nowhere near the $492,300 threshold?

Wait, so the cost basis isn't zero for RSUs? My brokerage statement shows cost basis as $0 for all these transactions, which is why I've been entering them that way. So I should actually be entering the value of the shares when they vested as the cost basis? My company did withhold taxes when these vested about 2 years ago, so that would make sense. But why wouldn't the brokerage report that as the cost basis on my tax forms?

The cost basis absolutely isn't zero for RSUs - it should be the fair market value on the date they vested, which is what was included in your W-2 income when they vested. Many brokerages report a zero basis on the standard 1099-B for RSUs, but they should provide supplemental information that shows the correct basis. This happens because the brokerages are only required to report what they know - the purchase price - but with RSUs there isn't a traditional "purchase." Check if your brokerage provides a supplemental tax document or adjusted cost basis information specifically for equity compensation. Some brokerages will mark these transactions as "basis not reported to the IRS" which means you need to adjust it yourself.

Does it work with multiple brokerages? My company switched RSU providers midway through my vesting schedule so I have transactions split between two different platforms, and it's a complete mess to sort out.

I'm a bit skeptical since I've tried other "automated" tax services before. How does it actually figure out the correct cost basis when the brokerage doesn't report it? Do you need to have all your original grant documents to make it work?

It absolutely works with multiple brokerages - that's actually one of its strengths. The system can combine data from different sources and reconcile the transactions properly. I had splits between Fidelity and E*Trade and it handled everything perfectly. The system uses a combination of document analysis and transaction matching to determine the correct basis. You don't necessarily need all your original grant documents as long as you have your vesting statements or pay stubs that show when RSUs vested. It can extract the fair market values from those documents and match them to your sales. In my case, it even pulled historical stock price data to verify everything.

How does this actually work? Does it just keep redialing until it gets through? I've been on hold with the IRS for literally hours trying to sort out my RSU reporting.

This sounds too good to be true. The IRS phone lines are notorious for being impossible. I've tried calling at exactly 7:00 AM when they open and still waited 2+ hours. Are you sure this isn't just adding you to the same queue as everyone else?

It doesn't just redial - it uses a sophisticated system that navigates through all the IRS phone menus and waits in the queue for you. Once an agent is available, it calls you and connects you directly to that agent. You don't have to sit on hold or keep redialing - you just get a notification when an agent is ready to talk. I was definitely skeptical too, but it's not adding you to a different queue - it's just handling the waiting part for you. Think of it like having someone else wait in line while you go do something productive. The service got me through to an actual IRS tax specialist who specifically handles investment income questions, not just a general agent. It's the real deal.

Thanks for that tip about the adjustment code! I didn't even know I had to indicate why I was changing the basis. How detailed do I need to be with the explanation? Is it enough to just say "RSU vesting date FMV" or do I need to provide more documentation?

Code "B" is all you need on Form 8949 - you don't need to write a detailed explanation. However, I highly recommend keeping documentation that shows the fair market value on the vesting date. This could be your vesting statements, pay stubs showing the RSU income, or a statement from your company's equity portal. If you get audited (which is unlikely but possible), having that documentation ready will make the process much smoother. The IRS mainly wants to ensure you're not double-counting the income (once when it vested and again when you sold), or trying to avoid taxes by artificially increasing your basis.

You should definitely use the Supplemental Information! That's actually the correct data for your tax return. The official 1099-B often shows zero basis because that's what brokerages are required to report to the IRS, but the Supplemental Information shows the actual cost basis you should use. This is a really common issue with RSUs. The brokerage knows you need the adjusted basis information but they can't put it on the official 1099-B form due to IRS reporting requirements. That's why they provide it separately.