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Level 2

Sale of stock options

After I retired, I held stock options for 10 years and sold them. The info about the sale came thru on a W@ and listed the proceeds as wages with notation after that they were stock options. How do I record them on my 1040?



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Catalyst V

Sale of stock options

Sounds like you had a grant that you never exercised for that period.....thus it was a Same-Day sale.  (Assuming you did sell the stock and don't hold it after the exercise)


So to do that you enter your W-2 as a W-2, and you also enter the stock sale on a form 1099-B/8949 as if it was any other stock sale....but you update the basis of the sale to the price on the date you actually exercised it....pus any brokerage fees should result in a small loss for the brokerage entries.  AND you do not say that you had taxes withheld during the brokerage entries...because that withholding is on your W-2 (correct?), and you've already entered that form.  So all the gain and withholding is a part of your W-2 form entry.


To do this with the Online software, you must use "Premier".  Deluxe can do it if you are using the Desktop software, but "Premier" has an interview section specifically geared to employee stock option sales.


Read situation #2 here if you did a same-day exercise and sale of either NQSO or ISO options