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Level 2
posted Apr 17, 2023 4:27:34 AM

1099-B vs. stock plan transactions supplement

Hello,

 

For employee stock transactions (RSU and ESPP), stock plan transactions supplement reports adjustment amount (ordinary income), adjusted cost basis, and adjusted gain (loss), resulting in reported adjusted (loss). 1099-B does not report adjusted values, resulting in reported realized gain. W-2 in Box 14 has ESPP, ISODD and RSU amounts. How to reconcile and properly report?

 

Thank you.

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1 Replies
Expert Alumni
Apr 17, 2023 7:39:04 AM

Since the gain on that stock sale was included as income on your W-2, to avoid double taxation:

  • You will need to change the stock basis on the date of the sale, to the price on the date of sale.  
  • The result is zero gain or a minor loss due to brokers commission/fees.  
  • The IRS will expect to see that information on your tax return.  

For additional information, see the TurboTax article: Non-Qualified Stock Options.