I recommend you delete the import and enter your ISO exercise and sale yourself. It sounds like you did a simultaneous exercise and sell transaction. If this is the case, it's a relatively simple thing to report. The first thing you need to realize is that your 1099-B is probably wrong. They typically report the exercise price as the cost basis; however, the real cost basis is the value of the stock at the time you exercised the options. This is because the difference in what you paid (the strike price) and the value of the stock at that time is ordinary income, which is included in your box 1 wages on your W-2. So, you have to make an adjustment to the cost basis to include that bargain element. If there is a difference between the value at the time of the stock at the time of exercise (your cost basis) and the value at the time of sale (proceeds), you will have short term gain/loss. To enter the transactions manually, while logged in to your return:
- Click on Search
- In the Search Window type Jump to 1099-B
- Click on Jump to 1099-B
- Click + Add an Account (if the account you downloaded is showing, delete it first)
- Answer Yes to "Did or will you receive a 1099-B form or brokerage statement for these sales? "
- Click on "I'll type it in myself"
- Select your Bank or brokerage and click Continue
- On the page with "Tell us about your 1099-B sales for this Charles Schwab account" answer the question about employee stock & the number of sales, etc.
- click the button "I'll type it in myself"
The program will walk you through entering the transactions.
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