I sold shares of company stock awards when they vested. They are in 1099B as short term realized gains. Form 8949 is not populating to show as income on my W2. Help?

[DianeC958]

The W-2 you received for 2019 should show the vested stock awards as income.  You then report them on form 8949 if you sold them adding to the basis on your 1099-B the amount that is included in your W-2.

Often the company reports the amount of the vested Stock Awards in Box 14 of your W-2.

How to Report RSUs or Stock Grants on your Tax Return

[jesimpson]

My stock capital gains are shown on my W-2.   I get a 1099-B form that also shows my gains. So, that's double taxes if I report both in TurboTax.  How to resolve?

[MayaD]

Generally, the 1099-B itself will come with the basis as $0.00. You will need to correct the basis of the sales as you have already paid taxes on the transaction in your W2. 

When you enter you 1099-B information you will be asked: 'Do these sales include any employee stock? This includes ESPP, RSU, RS, NQSO, and ISO' Say yes.

Then you will be asked 'What type of investment did you sell?' Select the type of Investment.

Check the box that says 'The cost basis is incorrect or missing on my 1099-B'.

[Rick19744]

No double taxation.

What you are not understanding is that the stock reported on your W-2 is ordinary income; the facts are limited in attempting to go much further in regards to this explanation.

However, since the income has been reflected on your W-2, this component is now your basis in the stock.  I believe this is the piece you are missing.

The 1099-B only reports what you received in the way of proceeds and generally do not have the correct basis information.  You need to make sure that you input in TT the correct basis as noted above.  Then the only tax is on the gain since exercise.

[jesimpson]

Actually, I did an import (from Fidelity) into your TurboTax form.  What it did not carry over was the date acquired, which was listed on my 1099-B form, so I entered those in TurboxTax gui.   So, it now seems complete; however, my W-2 shows it took out $21,559 for Rsu Grant, and the import shows $21,816 imported Gross.  So, my W-2 is saying I "earned" $21,559 that I've payed taxes on.  The 1099-B was not blank as a basis.  The import matches my 1099-B sheet. But of course with my short term sale and cost basis difference, it comes to (note $9,457 as total cost basis on the 1099-B), $12,358 realized gain on the 1099-B.  

So, I never see the instruction you show above.  It's done as far as TurboTax is concerned.  But, obviously wrong since I would be paying twice in taxes, because the$12,358 gets transferred to capital gains.   

So, I was overtaxed to start with (i.e. $21,559) and charged again with the capital gains ($12,358).    How to correct?  

[ThomasM125]

When you enter your form 1099-B information in TurboTax, you will see this screen:

If you click on the "I'll enter additional info on my own" box, you can enter the correct cost basis of your share sales, which should include the income reported on your W-2 form, then an adjustment will show on form 8949 to increase the basis reported on your form 1099-B, and avoid the double counting of your income you are experiencing now.

[Mountains4halls]

I am having this same situation for 2022 yet not getting any of these questions.  Is anyone else experiencing this? I feel like there is no place to enter cost basis and that we are being double taxed since the sell if awarded shares are listed on both the W2 and 1099B. 

[Mountains4halls]

Based on all the  comments, it appears we should not do the auto download and instead manually enter so it captures cost basis.  Does that make sense? I auto downloaded from my broker/employer and I can't seem to find where to enter cost basis info. Ugh. 

[GeorgeM777]

Yes, you can manually enter your transactions rather than importing them from your brokerage firm.  It appears you may have Restricted Stock Units (RSUs) to report or perhaps shares purchased through your firm's Employee Stock Purchase Plan (ESPP).  If that is so, or if your shares were obtained through another method, provide that additional information so that we can better understand your tax situation.   Just an fyi, the tax calculation for RSUs is different than it is for shares purchased through an ESPP. 

Here are the steps to follow to manually enter your transactions.  Whether you enter them manually or upload them, the beginning part of the process is the same.

1. Sign-in to your account.
2. Select Federal  in the left margin.
3. Select Wages & Income, left margin.
4. On Your Income and expenses screen scroll down to Investment and Savings.
5. Click on the drop-down arrow if necessary to reveal more options.
6. Click Start/Revisit across from Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
7. At the screen Let's import your tax info, you will see the option to Enter a different way.
8. Then select the type of investment.
9. Continue to enter information as prompted.
10. At the screen Now, choose how to enter your sales, make the appropriate selection.
11. Enter your stock information.  It is here where you can enter your cost basis.  

If you are using TurboTax CD/download, the process is very similar.  

@Mountains4halls