I filed my taxes thru TurboTax using the desktop version. Our only income this year is Social Security, savings account interest and sale of company stock from my former employer where I cashed in approximately $11,200 in stocks (ISO) that were held for more than 5 years. All info was input into TT and I used all electronic forms for income, other than the 1099B, when asked by TT. When I filed our taxes, TurboTax refused to pull down the information from Morgan Stanley for the 1099B, so I used the 1099B to fill in the info manually, and following TT instructions and mailed the form to the IRS after our tax return was accepted by the IRS.
Our income is such that we are exempt from long term capital gains. Turbo Tax never changed our refund amount after entering the 1099B info and amount, so I assume that further affirms our exemption from capital gains. If not, I would expect it would have deducted the tax from our refund?
Then this letter arrived today. It is asking for forms/documents to justify the refund amount (line 25D) on our tax return. They are asking for a W-2 (neither of us works, only receive SS so no W-2s.) It is asking for a W-2G, Gambling winnings (we have never gambled or won anything anywhere.) It is asking for a 1099R (which we do not have nor did we have any income that would cause us to be issued a 1099R, only the 1099B). Lastly it says, "Other forms reporting wage or withholding." Would that be the 1099B and our SSA1099, along with the interest from our savings account (although none of those are actually wages but income)?
I'm so confused. I truly regret using TT this year with the sale of the company stock, I thought TT could handle it, but I guess not.
Please help. Thank you.
