My 1099-B has a line for an Employee Stock Purchase Plan stock sale that specifies details not available (non-covered security - cost basis not reported to IRS) and I did not receive a form 3922 listing purchase details. The stock sale consists of purchases spanning 2003 through 2011.
I created a spreadsheet that contains the details of all the bi-weekly stock purchases during this 9 year period. It lists over 100 transactions.
Do I need to enter all of this detail line by line in Turbo Tax or is there a simpler way?
Unless you can calculate the correct basis to use for each one of those 100+ lots of stock you sold and the compensation created (or not) by the sales, the "most correct" way of entering this information is to enter all the detail, using the ESPP "guided" interview. (I don't think Congress ever appreciated the problems they were creating for the ordinary taxpayer when the established ESPPs back in the 70's.)
If by some miracle you do know the correct basis for each lot, including compensation, (if any), then you can enter the sale in a "summary" fashion and enter the compensation elsewhere in the program.
Finally, you could simply enter the sale in summary fashion using only what you paid for the stock. That's not correct of course but as long as the IRS never comes calling asking you to back up your numbers (they almost certainly won't) at least you've entered the sale.
Thank You, Tom!
The information you provided is very helpful.
I actually do have the correct basis for each lot including employer compensation, from 11 annual detail statements. From these detailed statements, it appears that stock is purchased at the end of each 2 week pay period ( 2 week lots?). I also have other lines for stock from the same company on the 1099-B, including a summary line for long term covered (basis reported to IRS) gains and a summary line for short term covered gains over different periods, so I don't believe I can do a summary for the full 1099. The compensation data entry portion of Turbo Tax is where it appears I need to enter data by individual lot. It's unfortunate I don't seem to be able to enter a summary there from the annual detail statements.
Don't know if you have any additional insights from the information I have added.
Whether you do or not, I greatly appreciate the information you have provided.
You can simply enter the summarized version. It will have to be split between Long and Short term gains. You would then have to mail a copy of the 1099-B attached to a Form 8949 to the IRS.
TurboTax will generate this for you if you elect to summarize.
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"so I don't believe I can do a summary for the full 1099."
Yes, that's correct. You can do summaries though for long term non-covered, long term covered, and short term covered. It sounds like you do have all the information needed. One question though: the Qualified Dispositions - stocks held more than 2 years from the grant date and more than 1 year from the purchase date - have a different calculation of "compensation" (if any) than Disqualifying Dispositions. Has that portion of your basis been calculated correctly?
Assuming everything is copacetic you can enter the long-term non-covered sales directly into the default 1099-B interview, supplying your basis number. For the covered sales enter the 1099-B exactly as it reads - wrong basis and all - and then correct the basis using the mechanism provided within the default 1099-B interview.
There's various ways you can now report the compensation and here's one way:*
Starting the "Miscellaneous Income, 1099-A, 11099-C" interview.
Starting the "Other income not already reported on a Form W-2 or Form 1099" interview.
Answering "Yes" on the "Other Wages Received" page.
Entering $0 on the "Wages Earned as a Household Employee" page.
Entering $0 on the "Sick or Disability Pay" page.
Answering "Yes" on the "Any Other Earned Income" page.
Ticking "Other" on the "Enter Source of Other Earned Income" page.
Entering a description and an amount on the "Any Other Earned Income" page.
*I've largely stepped away from answering tax questions in here so I haven't actually tried this method this year. It's always worked in the past just fine, but be sure to check.