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oliviaoslin
New Member

If I sold stock last year, do I need to amend a return to include the 1099-B, even if it was reported on my W-2?

 
1 Best answer

Accepted Solutions
Coleen3
Intuit Alumni

If I sold stock last year, do I need to amend a return to include the 1099-B, even if it was reported on my W-2?

Yes. You need to include both.

 Otherwise, the IRS will be sending you a letter in a few months.

You have to adjust the basis (purchase price) of the stock shares to reflect the "amount reported in your W-2". The basis reported on most 1099-B's omits the "compensation" element of the sale and therefore the "compensation" gets reported twice if you enter the 1099-B as it reads: once via the W-2 and then again on the sale of the stock.

Clearly, the "fix" here is to add back the compensation element to the basis of the stock being sold.  Of course, if the sale is not for ALL of the stock received under an employee stock incentive plan award, you then you need to convert the compensation element to a "per-share" figure which you use in reporting the sale.
 
If the 1099-B is not reporting the basis to the IRS, you simply type in the correct basis.  And you are done.
 
If the 1099-B is reporting the basis to the IRS and is not using the correct basis, (maybe only the amount you paid for the stock), then enter the 1099-B as it reads in the spreadsheet-like "fill in the boxes" default entry form but then click on the "Add More Details" box (or maybe "Edit Details"), and the "Start" button, (or maybe "Edit".)

When you enter your 1099-B information for your stock option transaction, do not select the Import option.  Instead, select "I'll type it in myself".  Click on Continue.  On the next screen, select your broker and click on Continue.  Next, select the categories of trades reported on your 1099-B and click Continue.  Enter the information reported for your sale just as it is on the 1099-B and then check the box below the transaction that says "This sale involves an employee stock plan (including ESPP) or an uncommon situation"  then click on Start now.  Continue through the interview to enter the information for stock options.  You should have received a statement from your employer or the broker that manages your company's plan.  You will need that information. 
 

This will result in your option transaction being properly recorded and the income will not be doubled.
 


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7 Replies
Texas Roger
Level 15

If I sold stock last year, do I need to amend a return to include the 1099-B, even if it was reported on my W-2?

Why would the sale of stock be reported on a W-2?
TomYoung
Level 13

If I sold stock last year, do I need to amend a return to include the 1099-B, even if it was reported on my W-2?

It's not, really.  

Employer stock incentive programs almost always do end up with some amount of compensation reported on a W-2, typically the "spread" between what the employee paid and the fair market value.  A "same day" will appear (mistakenly) to create a gain that's the same as that spread.  Ergo, many employees think that the gain is already reported on the W-2.
Coleen3
Intuit Alumni

If I sold stock last year, do I need to amend a return to include the 1099-B, even if it was reported on my W-2?

Yes. You need to include both.

 Otherwise, the IRS will be sending you a letter in a few months.

You have to adjust the basis (purchase price) of the stock shares to reflect the "amount reported in your W-2". The basis reported on most 1099-B's omits the "compensation" element of the sale and therefore the "compensation" gets reported twice if you enter the 1099-B as it reads: once via the W-2 and then again on the sale of the stock.

Clearly, the "fix" here is to add back the compensation element to the basis of the stock being sold.  Of course, if the sale is not for ALL of the stock received under an employee stock incentive plan award, you then you need to convert the compensation element to a "per-share" figure which you use in reporting the sale.
 
If the 1099-B is not reporting the basis to the IRS, you simply type in the correct basis.  And you are done.
 
If the 1099-B is reporting the basis to the IRS and is not using the correct basis, (maybe only the amount you paid for the stock), then enter the 1099-B as it reads in the spreadsheet-like "fill in the boxes" default entry form but then click on the "Add More Details" box (or maybe "Edit Details"), and the "Start" button, (or maybe "Edit".)

When you enter your 1099-B information for your stock option transaction, do not select the Import option.  Instead, select "I'll type it in myself".  Click on Continue.  On the next screen, select your broker and click on Continue.  Next, select the categories of trades reported on your 1099-B and click Continue.  Enter the information reported for your sale just as it is on the 1099-B and then check the box below the transaction that says "This sale involves an employee stock plan (including ESPP) or an uncommon situation"  then click on Start now.  Continue through the interview to enter the information for stock options.  You should have received a statement from your employer or the broker that manages your company's plan.  You will need that information. 
 

This will result in your option transaction being properly recorded and the income will not be doubled.
 


View solution in original post

oliviaoslin
New Member

If I sold stock last year, do I need to amend a return to include the 1099-B, even if it was reported on my W-2?

Got it, thanks. Will there be money owed when adding the 1099-B?
Coleen3
Intuit Alumni

If I sold stock last year, do I need to amend a return to include the 1099-B, even if it was reported on my W-2?

No. When you add the compensation back, then it zeros out. You just need to include both forms, since you can't not file a reporting doc. The adjustment on the 1099-B eliminates the double tax.
michaelae
New Member

If I sold stock last year, do I need to amend a return to include the 1099-B, even if it was reported on my W-2?

Where do I find box below the transaction that says "This sale involves an employee stock plan (including ESPP) or an uncommon situation"  then click on Start now.  

 

I could not find it directly in the steps with Turbotax 2019.

Do I have to do a specific form? 

KrisD15
Employee Tax Expert

If I sold stock last year, do I need to amend a return to include the 1099-B, even if it was reported on my W-2?

On TurboTax online when you enter the 1099-B

there is a box that needs to be selected that says "I have more info to enter that I don't see here"

Click that box and continue through the interview. 

(There is also a help link on that same page that reads:

"What if I have employee stock?"

Please click that link for more information.

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