No, that's not correct- you also don't understand the issue, but thanks for trying. This is not a regular stock sale.
The lack of sound financial advice from TurboTax impelled me to dig deeper and I found a way to make Turbotax accept NQSO same day cashless sales correctly and be able to file electronically. What you need to do is to chose NQSO but adjust the cost basis. So as you enter or review each NQSO sale, under box 1e (Cost basis), choose "the cost basis reported is incorrect or missing on my 1099-B" and hit continue. In the next screen, choose "I found my adjusted cost basis" and enter the adjusted basis as this example explains:
Example for a Non-Qualified Stock Option:
Say it's worth $10. And your exercise cost is $1. You perform a same-day exercise and sale. You made $9.
This $9 is taxed as wages and will show up on your W-2.
Since there was a stock sale, it ALSO shows up on your 1099-B as a $9 gain.
A $9 gain in two places could lead to a maximum tax rate of over 100% if reported twice.
In this situation, the cost basis needs to be ADJUSTED up from $1 to $10. An adjustment of $9 since you're already getting taxed on that amount as wage income
This example is taken from the method described at this URL:
https://www.modernfp.com/blog/doubletax#:~:text=Example%20for%20a%20Non%2DQualified%20Stock%20Option....
I tried it and form 8949 computes perfectly, showing a loss equal to the ordinary income reported on my W2. I had literally tried the 'manual override' on this form 8949 first and was all ready to file by mail when I thought I'd try one more internet search and came up with this method. I'd saved my 'mailed' forms (manual override) and compared them to the forms generated using this method and they were identical. So problem solved!
None of TurboTax 'experts' understand the issue. They should hire me as a consultant. Jeez, this was a huge draw on my time. At least now I'm filed electronically! For those of you struggling w/ Turbotax 2024's poor handling of cashless NQSOs, THIS is the solution!
