I agree that TT 2024 should go back to the approach used in TT 2023 and earlier versions- they need to fix 2024 TT. However the method that I posted yesterday (Feb 17) and subsequently noted as the best answer, that is, adjusting the cost basis reported on your 1099B upwards to reflect your gain, works equivalently to the 2023 TT approach for cashless NQSO exercises and enables you to file electronically. Furthermore, I went back and checked my 2023 form 8949 and it looks identical to what this method produced for my 2024 form 8949. You are correct that column 1(f) in form 8949 will show a code B using this method, but this is the correct code AND the proceeds (1d) and cost (1e) reflect that shown on my 1099B, but the adjustment in 1(g) was a negative number that matched precisely the negative of the 'wages' (i.e. the cashless NQSO gain) reported on my W2. So it does NOT double report the gain and avoids you wrongly paying much higher taxes.
So repeating what I posted yesterday and hopefully helping others avoid this nasty pitfall in 2024 TT:
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!
