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?

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

 

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

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: