turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

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

rices3056
New Member

How do I avoid double counting gross proceeds from stock options on 1099B-Box2=short term; Box3=reported to IRS; Box5=not checked and W2 Box12c=V?

How would I adjust the information in the "additional info" section to account for this same day scenario - Proceeds (Box1d) $10,000; Cost Basis (Box1e) $5000; Gain/Loss $5000; Box 6 Gross Proceeds?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
HelenaC
New Member

How do I avoid double counting gross proceeds from stock options on 1099B-Box2=short term; Box3=reported to IRS; Box5=not checked and W2 Box12c=V?

Oftentimes, the cost basis of an NQSO sale reported on a 1099-B doesn't include the stock's discount (compensation). If the compensation was reported on your W-2 (box 12, code V), you could be paying more taxes than you need to.

Your correct per share basis for this stock is the sum  per share exercise price and the per share fair market value of the stock on the date of exercise.  In other words, it’s the same as per share fair market value figure used by your employer to figure the compensation.

Here's how to fix that when you enter the sale from your 1099-B form:
  1. On the Tell us about your [company name, 1099-B] screen, enter the cost basis (box 1e) from your 1099-B, even if it's wrong. We'll correct that in Step 3.
  2. When finished, click or tap the I'll enter additional info on my own button at the bottom.
  3. On the following screen, enter the actual cost basis in the Corrected cost basis field.
    • For example, if your W-2 has $7,000 in Box 12 with a code V (the correct basis) and your 1099-B shows an incorrect cost basis of $3,000, you'd enter $7,000 in the Corrected cost basis field.
  4. Click or tap Done and the transaction will now reflect the corrected cost basis.

A same-day (cashless) NQSO transaction will usually "net out" to a small loss, representing the commission and fees associated with the transaction.

Related Information:
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question