Expert Alumni

Get your taxes done using TurboTax

You are correct about what the correct cost basis is.  Broker/Dealers report cost basis the way they are required to do so, and in cases like this it results in an incorrect cost basis.  The way to correct it is to enter an adjustment to cost basis in the 1099-B entry section of the program. If you imported your Form 1099-B, recommend you delete it and enter it manually To do so, while in your return:

  • Click on "Search"
  • Type "1099-B" in the search window and hit "Enter"
  • Delete your existing sale by clicking on the trash can icon
  • Click on Add more sales
  • Click on "Jump to 1099-b"
  • Answer "Yes" to Did you sell any investments in 2018? Click on Continue
  • Answer "Yes" to "Did you get a 1099-B or a brokerage statement for these sales?"
  • Enter your brokerage
  • Answer Yes to " Do these sales include any employee stock?"
  • Indicate a few sales (1-3) & click Continue
  • On the screen with "We strongly recommend entering your sales from Charles Schwab one at a time"  Click on Continue
  • Indicate "Nonqualified Stock Options (NQSO)"  and continue to enter your transacitons
  • At the bottom of the screen, check the box for " The cost basis is incorrect or missing on my 1099-B"
  • If you know you cost basis, indicate so and make the adjustment. 
  • If you don't know, or aren't sure, indicate " I need help figuring out my cost basis"  and the program will walk you through making the adjustment.


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"