Devin
New Member

Deductions & credits

For sell to cover transactions, the value of the stock is part of your wages. If you receive a W2 from this foreign company, then the box 1 wages should already reflect this. (If you don't receive a W2, then you should add this amount to the foreign wages you're reporting.)

As for the 1099B, start by reporting the the sale using all the info from the 1099B. If they've indicated this is a "noncovered" (or "Box B", or "basis not reported to the IRS") transaction, then just report the same amount for basis. Actually, if there were selling fees -- commonly these may have a small broker commission -- you should add that to the amount of income already in your wages. If the 1099B indicated it's a "covered" (or "Box A", or "basis is reported to the IRS") transaction, then put whatever they reported for basis (usually $0) in the cost basis field in TurboTax, but then indicate you have "additional info" to enter by selecting the "I'll enter additional info on my own" button. Enter the amount already included in wages (plus broker commission, if applicable) in the "corrected cost basis" field. This will result in no gain on the stock sale so you're not double-taxed on the income.