No double taxation.
What you are not understanding is that the stock reported on your W-2 is ordinary income; the facts are limited in attempting to go much further in regards to this explanation.
However, since the income has been reflected on your W-2, this component is now your basis in the stock. I believe this is the piece you are missing.
The 1099-B only reports what you received in the way of proceeds and generally do not have the correct basis information. You need to make sure that you input in TT the correct basis as noted above. Then the only tax is on the gain since exercise.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
