ThomasM125
Expert Alumni

Business & farm

The information you mention in question one regarding shares withheld to pay taxes and the such were only used by TurboTax to determine the correct cost basis to report on the Form 1099-B entry. If you reported that correctly, you don't need to be concerned about those questions. To determine the correct cost basis for shares sold, you would take the discount reported in box 1 of your W-2 form and divide it by the number of shares acquired to determine the discount per share. You would then multiply that by the number of shares sold to determine the discount element to be included in the cost basis as reported on the Form 1099-B. If you didn't pay anything for the shares, as is typical, then the cost basis would be the discount per share multiplied by the number of shares sold.

 

I couldn't find a summary of compensation income like you mention in TurboTax. There is a screen that summarizes your investment sales and shows the components of the sales such as Type of sale, proceeds, cost basis, adjustment and gain or loss. You see it when you are done entering your investment sales:

 

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