How can I add Federal Tax withheld shown in 1099-B while adding stock sales?

[shivendra.vikram]

My wife sold her ESPP stocks in 2021. She did not have her tax information on the brokerage site and they ended up withholding part of the sales proceed as Federal Tax. How do i enter it while filing taxes? I don't see an option when entering the sales.

[ThomasM125]

It is possible that they reported the tax withheld in box 2 on her W-2 form, in addition to the tax withheld from her wages. If so, then you just need to enter her W-2 form and you will get credit for the taxes withheld on your tax return.

[shivendra.vikram]

This sale was for stocks from her previous employer. I see others have faced a similar issue but the checkbox to they are referring to in the screenshot is no longer visible in this year's form.

https://ttlc.intuit.com/community/retirement/discussion/my-1099-b-has-federal-income-tax-withheld-wh...

[DawnC]

When you enter the 1099-B, put a checkmark in the box that says I have other boxes on my 1099-B to enter.   Once you put a checkmark there, the form will expand and allow you to enter the amount in Box 4 (federal withholding).    Make sure you are entering the 1099-B in the correct spot.   Where do I enter a 1099-B?

See image below

[sas8477]

I noticed the reply to this is that the tax withheld will be on the W2, however what if the person is retired and there is no W2?  Where do I record the taxes withheld?

[AmyC]

If the tax withheld is not on your w2 and not on your 1099-B, then you will need to enter the additional tax paid.

To enter the tax, follow these steps:

1. With TurboTax open select Deductions & Credits.
2. You may need to select See all tax breaks
3. Locate Estimates and Other taxes Paid section
4. Locate Income Taxes Paid 
5. Select Other Income Taxes Paid in 2023 
6. Select Withholding not already entered on a W-2 or 1099
7. Do you have withholding you haven’t entered? Select Yes
8. Enter federal, state and local withholdings
9. Continue

@sas8477 

[sas8477]

Amy...this is a continuation of my initial question about not having taxes from stock sales on my 1099B and not receiving a w2 because I am retired.  HOWEVER, I now have a W2 (even though was retired in 2023) with wages box 1 and the taxes boxes 2,4,6 from the Stock sales.  So  now I have a 1099B with the Cost basis and Gain/Loss AND a W2 with wages and box 12a V code (i.e. gain).  I feel that I am being double dinged on the wages/gains.  Hope that is somewhat clear.  Any thoughts on how I can remedy this?  I should also mention the amounts... wages does not equal the 1099B cost basis Exactly and the box 12a code V does not match the gain Exactly.

Thank you.

[DianeW777]

The amount in Box 12, code V is the amount that will become your cost basis for the stock because this is reported as taxable wages.  And in addition you would include any money you may have paid out of pocket.  

The gain will be the difference and you will enter the 1099-B as an investment sale.  I suggest you do not try to import but enter it yourself.

• Where do I enter or import my 1099-B?

@sas8477 

[sas8477]

• Thank you, but what about the wages on w2? 

[sas8477]

Hello, disregard previous question (about the w2), I figured it out.  I used the supplemental form included with 1099B to adjust form 8949.

[wstarrs]

I noticed the reply to this is that the tax withheld will be on the W2.  How do I confirm that the taxes are withheld on the W2?  I do not believe the taxes have been withheld for NQSO and RSU sales shown on my 1099-B and I don't believe they are on the W2.  What do I do?

[DawnC]

Your 1099-B should show a small gain or loss, and the withholdings on your w-2 are in Box 2.   @wstarrs 

[wstarrs]

My 1099-B has a total of almost $100k of gains but does not show any taxes in block 4.  I have transaction confirmations showing that taxes (both Fed and State) were taken out but those don't show on the 1099-B.  The notes say that the taxes are not on the 1099-B because they are shown on my W2.  How do I confirm that?  I the taxes are not on the W2 how do I capture them in my tax return?

[Vanessa A]

You would have to verify with your employer to be sure they are on your W-2.  You can also "do the math" and see if you have more withholdings on your W-2 than you did on your weekly or biweekly pay stubs.  For example, if every week you had $500 in federal taxes withheld, then you would have $26,000 in federal withholdings.  If you several thousand more on your W-2, you would know that they including the withholdings on your W-2.

If they did not, you would need to get a corrected W-2 from your employer.

At this stage in the game, you would likely need to file an extension to wait for the time to get the W-2C. Click here to file an extension.  Remember an extension is just for extra time to file, not extra time to pay.  If you are going to owe anything, you will still need to pay by April 15th. 

You can pay directly via the IRS website which is the recommended way or you can pay by check.  Be sure to include your SSN on your check and the tax year.