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New Member

Adjusted cost or other basis stock options

I imported my 1099-B. My 'tax due' skyrocketed, as a result.  I paid taxes at the time I exercised my options so I know something is off.  I have a 'supplemental information' page included with my 1099-B that has an 'adjusted cost or other basis' column that is significantly higher than the 'cost basis' on my 1099-B.  Is this the reason why my tax burden jumped? Do I enter the adjusted cost basis from my 1099 supplemental sheet?  Thank you.
1 Reply
Expert Alumni

Adjusted cost or other basis stock options

It would seem the adjusted basis on your supplemental information page is accounting for the increased basis that was included in your taxable income (the funds you were taxed on when you exercised your options).  This should be accounted for in your tax basis (cost basis) of the stock.  

If the figures make sense based on that theory you definitely need to adjust the cost basis in TurboTax to reflect the accurate gain. You should compare your taxable wages with your supplemental sheet to make your determination.

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