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Get your taxes done using TurboTax
Thank you AmyC so much. I ran through Turbo Tax.
I exercised the stock options 10 times from the same grant lot on 10 different dates, and sold the shares immediately for cash gain. The brokerage firm sent the 1099B to IRS, which not only showed the summary of total proceeds and total cost bases, but also individual sale - all 10 one by one. The company reported the gain as income on W2 Box 1 and also Box 12a - "V" for nonstatutory stock option. Since the W2 listed only 1 total gain (did not break down by 10 exercises), and it was listed on 1099B as short term covered without adjustment, I thought that the best way is to summarize using total proceed and total cost base when entering 1099B information instead of breaking down to 10 entries. I added the W2 Box 12a amount to the 1099B cost base. This is how it was instructed: https://turbotax.intuit.com/tax-tips/investments-and-taxes/non-qualified-stock-options/L8zsxRi7B.
The turbox indicted that there is no need to send 1099B or Form 8453 if I efile - I will efile.
When I look at the pdf of the draft final submission in Turbotax, it just showed the total proceed and total base (1099B base + W2 Box 12a amount). How will the IRS know that I have correctly added the W2 Box 12a amount to the 1099B base? When they review my efile, will they be able to figure it out quickly. If not, what is the best way to make it clear for IRS to help them?