Amending 2023 Return to correct company stock sales

[Lisa6586]

My husband was granted NSO stocks before his company went public and when the company went public our shares were converted and we decided to sell some last year.  Since I was new to company stock, I did not know about the Stock Plan Transactions Supplement or that I should have entered the sales individually.  I entered the 10 transactions as 1 since I sold them on the same day and just used the total line on the 1099 from E*Trade (which I now know was wrong, since we sold more shares this year).

Here is my problem.... I need to amend my 2023 Return to correct my error, but when I go to Turbo Tax to amend my return, I only have 1 line to correct since I entered the stock sales as 1 transaction instead of 10?  Do I have to find a way to calculate the transactions into 1 or is there a trick to enter the other transactions?  Also, there are 13 adjustment codes to select , what do I select O - other adjustment not listed)?

Thanks for your help

[RobertB4444]

Please clarify - did the bottom line totals match up with what they should have been?  Did you receive a request from the IRS that you provide this information?

If the bottom line totals on the return are the same as they would have been then you don't need to amend the tax return at all.  You would only do that if the IRS sends you a request for the information.  Because there will not be a net change to the return and if the IRS wants to get more information they will probably want to look at your 1099 and the statement(s) that you have received.

So, in that case, just change the way that you enter the transactions going forward.

@Lisa6586 

[Lisa6586]

I did not receive any notification from IRS. I noticed it this year when I was doing my return. Last year I just entered the total line from the 1099 from E*trade and didn’t enter each sale separately. 

This tax year I entered the sales individually and then Turbo Tax asked about the adjusted number from the stock plan transaction supplement and that is when I realized that I didn’t do that on my 2023 return. 

So I went to look at last year’s return and realized that I entered the stock sales incorrect. I created a spreadsheet to enter the sales individually to come up with the numbers I should have used (that match the supplement) and assume when I file the amendment for 2023 I can enter one line to match the supplement.  

I created an amended form for 2023 and if I would have filed taxes last year using the supplement the refunds balance. 

[RobertB4444]

So if there was no net change then I would just sit on your calculations in case there is ever a question.  No need to file an amendment.

@Lisa6586 

[Lisa6586]

I believe I might have solved my problem.  I do need to amend because I didn’t use the numbers from the Stock Plan Transaction Supplement, because if I had, my refund would have been larger since I had sold some stocks at a loss. 

I used my 2023 return in TurboTax and recalculated by entering the sales individually using the stock plan supplement and the refund I should have received if I entered the sales individually using ACB. When I amended my 2023 return the difference of what I should have received and what I did receive is the amount on my amended return. 

I now know the importance of the Stock Plan Transaction Supplement.