I was able to handle this by manually entering the stock sale information, indicating that it was from a NQSO and manually entering the adjustment amount (the profit from the sale). I was unable to do this when I downloaded the information from the broker as TurboTax kept running me around in a circle when I tried to enter the adjustment.
I checked and the Form 8949 and the Schedule D show the adjustment, and the return passed the Federal Review. I am assuming that the IRS won't have a problem as the W-2 shows that the income came from a stock sale and it and the broker's 1099-B show it was stock from that company that I sold.
Unfortunately, I wasted a lot of time getting to this point. TurboTax should be updated so that others don't waste their time or pay more than they should in taxes.
