Get your taxes done using TurboTax

ThomasM125 · ‎March 16, 2021

Normally, there is an ordinary income (compensation) component of your employee stock sale that is included in your wage income as reported in box 1 of your W-2 form. Often, that amount will not be factored into the cost basis reported on the form 1099-B that you receive reporting the stock sale. So, when you enter your 1099-B, you may need to add the compensation income reported on your W-2 form to the basis reported on your form 1099-B.

You will see an option when you enter an investment sale in TurboTax to adjust the cost basis, and this is all you need to do once you have entered your W-2 form to complete the entry of your employee stock sale in TurboTax, assuming your compensation was entered on your W-2 form. You will see this in TurboTax to enter an adjustment to your gain/loss on investment sale:

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