Enter the Form 1099-B (see steps below) and it will automatically create Form 8949.
Y
ou won't get taxed on the income again, because you will have a cost basis in the stock that is approximately equal to what your proceeds were.
You will need TurboTax Premier to make the necessary entries in the Stocks, Bonds, Mutual Funds and Other interview in the Investment Income section of Federal Taxes tab > Wages & Income category.
Steps:
1. Start/Revisit/Edit the Stocks, Bonds, Mutual Funds and Other interview.
2. Select Yes in the "Did you sell any investments in 2015?" screen (or add another investment).
3. If the Form 1099-B was already imported, you will need to go through the interview screens until you come to where you can Edit the Form 1099-B. Select Edit. Otherwise, just follow the prompts to type the information in.
4. On the Review (or Tell us about) your Box A (or whatever Box the import showed) sales from your 1099-B screen, make sure the information in Boxes 1a, 1b, 1c, and 1d are as you imported them. Select Continue
5. Check "This sale involves an employee stock plan (including ESPP) or an uncommon situation." and Start now
6. On Tell us about your situation screen, check I have sales from an Employee Stock Plan, including ESPP, NQSO, ISO, RS, and RSU. Select Continue
7. On What type of employee stock plan was this sale from? check whatever type ESP you had (I used NQSO, since that is the most common and the income is included on your Form W-2). Select Continue
8. When you come to Did You Do a Same-Day Sale? answer the question (I used Same-day sale (cashless exercise), again the most common).Select Continue
9. Enter Your Sale Information (sample screenshot attached). Select Continue
10. Total Proceeds Summary (this is calculated, but you were probably charged a small commission which you can enter in the Sales Expenses section at the bottom. Select Continue
11. Proceed to Enter Your Purchase (Exercise) Information and enter your exercise price (sample screen attached). Select Continue
12. Does Your Cost Basis Match Your 1099-B Statement? I assumed the broker didn't report a cost basis. (sample screen attached) Select Continue
13. Your Nonqualified Stock Option (NQSO) Sale Results - the previous steps result in zero gain (or a small loss for commission costs) which is correct since your W-2 already reported the proceeds as income. (sample screen attached).
Please post a Comment if you have additional questions, but these steps should help you avoid any IRS issues.
