Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Showing results for 
Search instead for 
Did you mean: 
New Member

Do I have to report both "disqualifying dispositions" W-2 and stock sale 1099-B?

I sold ISOs last year with disqualifying dispositions.  I received both W2 for the disqualifying disposition and 1099-B for the stock sale.  Do I need to report both?  There are a lot of answers regarding how to report the 1099-B in Turbo Tax,  but there isn't any regarding what to do with the W-2?  If I report both, I will be double taxed for a large portion of the ISO sale.


1 Reply
Expert Alumni

Do I have to report both "disqualifying dispositions" W-2 and stock sale 1099-B?

The W-2 income is the 'bargain element', or the discount you received on the FMV stock price when you exercised your stock option. 

The 1099-B reports the gain/loss from the sale at cost basis (without the bargain element) to sales price, so both do need to be reported in your return.

The tax consequences have alot to do with the Grant Date/Exercise Date/Sale Date combinations. 

Here's an article that explains in detail:

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.



Manage cookies