Investors & landlords

"From reading it seems like turbox tax online can handle this, should I switch?"

 

I assume that you are using the desktop product based on your statement.  I'd stick with the desktop product because it can handle all stock trades just fine.

 

I'll assume that you both exercised the ISO and sold all the stock so acquired in 2019.  That eliminates the need to use the ISO "guided" stock sale interview.

 

The "most" correct way to enter this sale - and I'm also assuming you do know the correct cost basis which almost certainly isn't the W-2 income number - is to enter the 1099-B exactly as it reads, wrong basis and all, on the "normal stock sale" entry form.  Then click the blue "I'll enter additional info on my own button" and on the new window that shows up under the correct basis for the sale in the "Corrected cost basis" box.

 

That will eliminate the double taxation issue and post information on Form 8949 in "IRS prescribed" fashion, i.e., the broker's basis will be there as well as you adjustment to that basis, along with an adjustment code.,

 

You certainly can simply enter the correct basis on the "normal stock sale" entry form instead of the (incorrect) basis provided by the broker.  That method also states you income correctly and stating your income correctly is your prime responsibility as a taxpayer.