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Level 1
posted Jan 29, 2022 6:55:36 AM

1099 Forms and W2

During the year I sold some stock and stock options that I received as incentive compensation from my employer.  When I made the sales, my employer deducted the federal taxes due on the gain.  My employer included this income and the federal tax paid on my W2.  I also received a 1099B form.  In Turbo tax if I enter this in the W2 section and the 1099 section as income, it appears to double up my income.  It looks like I should only enter this in the W2 section and not the 1099 section.  Is that correct?  Are there any implications if I do not add a 1099 section in my return, if all the income and taxes paid are included in the W2 section?

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1 Best answer
Expert Alumni
Jan 30, 2022 11:51:30 AM

You'll need to enter both your W-2 and your 1099-B form. 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.

1 Replies
Expert Alumni
Jan 30, 2022 11:51:30 AM

You'll need to enter both your W-2 and your 1099-B form. 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.