Hello,
I exercised some ISO shares 2 years ago and sold them in 2023. It's a qualified disposition. After I imported the transaction from etrade, the cost basis is correctly reported. Each share's strike price was lets say $1 and I sold the shares for $10/share. The cost basis for "Normal taxes" is $1 per share. However, when i exercised the shares 2 years ago, the FMV at exercise was $20. How do I tell turboTax about the FMV at exercise was $20/share so that I can recoup some of the AMT credits I paid when i exercised the shares? In Turbotax 2022 from last year, there was an option that started an "Employee Stock Transaction Worksheet", I don't actually see this same option in Turbotax 2023. Any help would be greatly appreciated.
Found the answer here: specifically this:
Thanks this is what I needed. To give a more specific description for anyone else, I needed to check "enter them individually" after confirming it was an ISO sale. Then after checking the box that the cost basis is incorrect, I needed to check the field that said "I can't find it and need help" in regards to a supplemental form to the 1099-B. It seems this is because the broker I sold the stock with is not affiliated with the company that issues the original options... So they don't have any information other than the cost basis from when I transferred the options over.
This all led me to various prompts that allowed me to enter my 3921 form details from the ISO exercise. It appears this is doing what I need it to do.
Doing this allows you to fill out the necessary cost basis fix for AMT for each of your ISO transitions. Hope this helps others.
Please go to
"Other Tax Situations"
"Alternative Minimum Tax (AMT)
START
Select the first option "I exercised ISOs in 2023, but didn't sell the stock. Or I sold the ISOs that I purchased in a previous year"
CONTINUE to the second screen "Did you sell ISOs in 2023 that you purchased in a previous year"
Enter the adjustment as a negative number on that screen.
I am using the Desktop version of Turbotax Premier 2023 on a Mac. When I go to "Other Tax Situations" and then "Update AMT", I get the following screen:
None of the options are for ISO adjustments. I clicked through the second and third option and that's probably the closest to the thing you describe?
But not quite what I wanted. Last year it was clear that I was making an adjustment for a specific ISO batch of shares. Any other suggestions? Appreciate the help.
Found the answer here: specifically this:
Thanks this is what I needed. To give a more specific description for anyone else, I needed to check "enter them individually" after confirming it was an ISO sale. Then after checking the box that the cost basis is incorrect, I needed to check the field that said "I can't find it and need help" in regards to a supplemental form to the 1099-B. It seems this is because the broker I sold the stock with is not affiliated with the company that issues the original options... So they don't have any information other than the cost basis from when I transferred the options over.
This all led me to various prompts that allowed me to enter my 3921 form details from the ISO exercise. It appears this is doing what I need it to do.
Doing this allows you to fill out the necessary cost basis fix for AMT for each of your ISO transitions. Hope this helps others.