Get your taxes done using TurboTax

The amount on your W-2 form referenced by code 12-V represents the discount on the shares you acquired though your non-qualified stock options. If you divide that amount by the number of shares you acquired, you will have a discount income per share amount. When you enter your Form 1099-B, multiply the discount income per share amount by the number of shares sold and you will have the cost adjustment you need to add to the cost basis reported on your Form 1099-B.

When you enter your Form 1099-B, you will choose the option that says you sold employee stock. When you enter the sale information, indicate that you sold Non-qualified stock options and check the box for line 1(e) that says the cost basis is wrong or missing:

If you know the cost basis per the instructions above, you can choose on the next screen an option to enter it, otherwise you can choose the option to let TurboTax help you determine the cost basis and you can work through a couple of worksheet to determine the cost basis adjustment.