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?

[Critter]

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. 

[Lisa995]

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.