.......for the 1099-B.....since the gain was reported on yoru W-2....You are supposed to update the Cost Basis for the stock to be the same as the sales price on the date you bought and immediately sold. The proceeds will be slightly lower and a small loss if brokerage fees reduced the total proceeds.
That removes the double-taxation
TTX has a long explanation on how to do this....See Example #2 here for details....it applies to both NQSO's and ISO's where an immediate exercise&sale was done:
Non-Qualified Stock Options - TurboTax Tax Tips & Videos (intuit.com)
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If you bought them and held them for a while, then perhaps one of the other options applies....but the help article is specific to NQSO shares for some of those situations..
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..and ISO's purchased and held for over a year have different details involved.
Incentive Stock Options - TurboTax Tax Tips & Videos (intuit.com)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
