Consolidated 1099-B, Noncovered securities, cost basis how report

Question

Hi I have a consolidated 1099 due to the sale of some Restricted Stock Units (RSU) through employer plan The page 1 summary says IRS 2025 FORM 1099 DIV — DIVIDENDS AND DISTRIBUTIONS …1a…1b…2a…2b…2c…2d…3…4…5…6…7…8…9…10… IRS 2025 FORM 1099-B—PROCEEDS FROM BROKER AND BARTER EXCHANGE TRANSACTIONS … 1e. COST OR OTHER BASIS OF COVERED SECURITIES = $0 … But then in the detailed 1099-B later on it says Form 1099-B Proceeds From Broker and Barter Exchange Transactions Short Term – Noncovered Securities … Cost or other basis (Box 1e) = $123 … How do I fill out Form 8949 1e, 1f, and 1g? 1e = blank = $0 1f = B 1g = $123 or 1e = $123 1f = blank = $0 1g = blank = $0 or 1e = $123 1f = B 1g = blank = $0 Or some other way?

JanaA · Answer

Hello user91872! Since your broker has reported the correct cost basis on the detailed 1099-B, you would enter that amount in Box 1e and leave both 1f and 1g blank. No adjustment is needed when the reported basis is accurate.

Your analysis is also spot-on. The $0 on the summary page applies to covered securities, which is a separate category from your noncovered securities transaction. Those two sections are tracked and reported differently, so the summary figure doesn't affect your noncovered sale at all.

user91872 · Answer

Hi kiarab thank you for the reply!

I double checked and the cost basis reported to me on the 1099-B is indeed correct. So I believe I should enter the $123 in 1e and leave both 1f and 1g blank (which was actually option 2 as listed in my original question) since there is no adjustment needed.

Upon further research, I think the tax software questions are written in case a broker erroneously reports a zero cost basis. For example, if a broker sells part of your shares during vesting to cover taxes and then a 1099-B is generated with a default zero cost basis (due to policy, or simply bc they dont know your cost basis...etc) but there may not actually be any capital gain.

In my case, I do have a capital gain and the broker does have my correct cost basis for my single sale of noncovered securities. Further, the cost basis is reported correctly (on the detailed transaction page). The zero value for the cost basis on the summary first page is irrelevant because it is for unrelated covered securities of which I had none.

kiarab · Answer

Hello user91872,

Generally, the way RSU's are reported, you need to make an adjustment to the cost basis because it is usually reported as 0, even though that is not the case. I'm going to include an link to an article from our Community site about RSUs and how to enter them in our software.

https://community.freetaxusa.com/kb/articles/142-what-are-restricted-stock-units-rsu?utm_source=community-search&utm_medium=organic-search&utm_term=rsu

But based on what you said, it sounds like the actual 1099-B is reporting your cost basis. If so, then I would report it as such (which would be the third option you listed). But I recommend you make sure that is your actual cost basis for your RSUs. If it isn't then you need to make an adjustment to the basis so you don't over report your capital gains.