I had stock options at a company I left in 2022. When I left I exercised the option. Later in 2022 the company did a funding round and my stock was sold to the new investor. I have received both a 1099-NEC for the "income" representing the difference in my purchase price and the FMV at time of exercising, and a 1099-B for the proceed from the following sale. The 1099-B does not show any cost basis. I'm now unsure how to file this. Let's do an example with round numbers to illustrate it:
Cash paid by me at time of exercising: $10,000
FMV at time of exercising: $40,000
Sales price: $100,000
My 1099-NEC lists income of $30,000 (FMV minus price paid; it does not detail the FMV and the price paid, just the difference)
My 1099-B lists proceeds as $100,000
Since the stock was sold in the same year it was purchased, my taxable gain should be $90K (100-10) and the FMV should be irrelevant. However, Turbotax sees both as taxable income, i.e. income of $130K instead of $90K.
How do I report this correctly so I'm only taxed on the $90K? I cannot just omit the 1099-NEC since it's reported to the IRS.
