If you exercised a non-qualified stock, the bargain component (the difference between the amount you paid, and the market price) is considered ordinary income and is included in your wages and reported on your W-2 box 1. Your cost basis is the market price at the time you purchased it, and not the exercise/strike price that you paid. Reporting rules require the broker to report the cost basis as the strike price. Therefore, you have to adjust the cost basis when you are reporting the sale. You will need to edit your transaction. There is a page in the 1099-B entry section, after you enter the transaction, that says "Select any less common adjustments that apply". One of those options is "The the cost basis on my statement is incorrect" Check that box, and click continue. That will trigger the program to open a box where you will enter the "Corrected cost basis".
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