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New Member
posted Jun 26, 2019 6:40:51 PM

How do I report ISO income on Schedule D, when it was reported to me on my W2 as income and reported in box 14 as ISO D?

0 2 1012
2 Replies
Level 15
Jun 27, 2019 12:27:20 PM

The ISO should be reported in 2 places ... on the W-2 showing what you paid for the stock and on the 1099-B from the broker showing the sale.   You MUST report BOTH parts or you will get an IRS letter.  If the stock sale is entered correctly you should have a small loss on the Sch D in the amount of the brokers fee if this was a cashless transaction.  If the broker did not report the cost basis correctly then it is up to you to do so. 

Alumni
Jun 27, 2019 5:57:58 PM

Enter the W2 as it is.  That wont go to Sch D.  You need to enter the 1099B from the brokerage to compute any gain/loss and that will appear on Sch D and the 8949.