You do need to report the form 1099-B sales on your tax return, since the IRS will get a copy of it and look for that entry on your tax return. However, you need to increase the cost basis reported by the amount of the income included on your W-2 form as wages.
When you report the sales amount and cost basis from your form 1099-B, enter the cost basis as reported, then choose the option "I'll enter additional information on my own", where you will be given the option to enter a "corrected cost basis" equal to the income reported on your W-2 form.
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