jc8871
New Member

How do I report short term capital gains from exercise and sale of ISO options for Massachusetts?

I have exercised and sold ISO in 2018, the gains I got from that transaction were reported in my W2 as well. For federal reporting I went in and fixed it by adjusting the cost basis to what my broker reported in an adjustment form to prevent my gains being taxed twice. This results in my short term capital gains being taxed as normal income in federal. But for MA, the short term capital gains tax is higher than normal income tax, and when I try to import my stock sales from federal portion of my return the capital gains come out to be -11 (the fees i paid for the transaction) thus I am not able to pay the correct rate for MA Short term capital gain. Do I have to report anything under "Any Short-Term Capital Loss Differences?" when doing state taxes?