Get your taxes done using TurboTax

Here's where you enter or import your 1099-B in TurboTax:

1. Open or continue your return, if you haven't already.
2. Select Search, enter 1099-B, and select Jump to 1099-B.
   1. You can also go to Federal, then Wages & Income, then Investments and Savings.
   2. Select Start or Revisit next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
3. Select Okay! on the screen Time to kick off your investments! OR Yes on the screen Did you sell any of these investments? then Continue.
   • If you see Your investments and savings or Your investment sales summary, select Add investments or Add more sales.
4. When you reach Let's import your tax info, choose how you want to enter your 1099-B:
   • To import your form, select your brokerage or financial institution from the list. Enter your sign-in credentials for your account, then select Get my form.
   • If you want to enter your 1099-B manually, select Enter a different way, then select your investment type on the next screen.
5. On the following screens, answer the questions about your 1099-B.
6. When you reach the Review your sales screen, the form you just entered should be listed.
   • If you need to add another 1099-B, select Add another sale. Otherwise, select Continue.

If this was reported on both a Form W-2 and 1099-B you may have to make an adjustment, but report the Form 1099-B on your tax return.

The IRS will be matching the 1099-B form with your Social Security number (SSN). If the 1099-B form is not on your income tax return, you may get a letter from the IRS with the entire 1099-B amount treated as taxable income and additional income tax due.

How do I fix the basis for an NQSO sale that was also reported on my W-2?

Oftentimes, the cost basis of an NQSO sale reported on a 1099-B doesn't include the stock's discount (also called the compensation). If the compensation was reported on your W-2 in box 12, you could be paying more taxes than you need to.

Here's how to make sure the cost basis is right when reporting the sale from your 1099-B:

1. Open your tax return and go to Federal, then Wages & Income.
2. Go to Investments and Savings, and then select Start or Revisit next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
3. Enter your 1099-B if you haven't already. If you have, select Edit under your 1099-B.
4. On the Tell us about the sales on your 1099‑B screen, select Yes when asked Do these sales include any employee stock? Answer the rest of the questions and select Continue.
5. Continue through the screens, and on the Now, enter one sale on your 1099‑B screen, fill out the fields and select The cost basis is incorrect or missing on my 1099‑B and Continue.
6. On the We noticed there's an issue with your cost basis...Let us know if you'd like to make any changes screen, select I know my cost basis and need to make an adjustment and enter the correct cost basis from your W-2 (box 12, code V).
   • If you have more than one sale on your 1099-B, you may want to reference the supplemental statement provided by your broker that shows the Box 12, Code V amount by individual sale, rather than the one amount on your W-2.
7. Select Continue and the transaction will now reflect the corrected cost basis.

A same-day (cashless) NQSO transaction will usually net out to a small loss, representing the commission and fees associated with the transaction.

Click here  for Instructions to Form 1099-B.

Click here for additional information regarding Form 1099B.