I worked for a startup for 4 years, and bought the vested ISO stock options when i left in 2017. The company folded last year. How to report on my tax return?

[ThomasM125 · Accepted solution]

I believe you mean that you purchased stock and the stock became worthless in 2020. If so, you would report this as a sale of an investment in TurboTax as follows:

1. Income and expenses
2. Investment income
3. Stocks, Mutual Funds, Bonds, Other
4. Indicate the you didn't receive a 1099-B form
5. Choose the I'll enter one sale at a time option
6. Enter a description, date acquired, date sold, sale proceeds as $0 and the cost basis as the amount you paid for the stock

[wxz]

Hi @ThomasM125 ,

Is there a chance we can get an update to these instructions? I'm in the same situation as the original poster but the option to indicate that I didn't receive a 1099-B form (step 4) or to enter one sale at a time (step 5) doesn't seem to exist under Stocks, Bonds, and Mutual Funds.

Thank you

[ThomasM125]

In the Stock, Cryptocurrency, Bonds, Mutual Funds, Other category of Investment Income, you choose Stocks, Bonds, Mutual Funds on the screen that says OK, let's start with one investment type:

Skip the import, then choose "yes" to the employee stock option:

Later you should see a screen were you can choose to enter sales one by one: