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rkeatin2
New Member

Taxes paid on stock options- they dont show on 1099b

 
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Accepted Solutions
TomYoung
Level 13

Taxes paid on stock options- they dont show on 1099b

That's because the proceeds of the  shares sold "for taxes" was passed back to your employer, who paid the government(s) and scattered those numbers in the various "taxes withheld" boxes of your W-2.  IF the broker had actually withheld the taxes and paid the government(s) - called "backup withholding" and relatively rare - THEN those taxes would have been reported to you on the 1099-B.  Ask your payroll department.

Are you thinking that you have to report the taxes you think were withheld by the broker because otherwise you're getting "double taxed"?  If that's the case the problem is that you are using the wrong basis to report the sale.  The broker is only reporting you "out of pocket" cost, not your correct basis of the sum of your out of pocket cost and the compensation created by those shares.

Tom Young

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1 Reply
TomYoung
Level 13

Taxes paid on stock options- they dont show on 1099b

That's because the proceeds of the  shares sold "for taxes" was passed back to your employer, who paid the government(s) and scattered those numbers in the various "taxes withheld" boxes of your W-2.  IF the broker had actually withheld the taxes and paid the government(s) - called "backup withholding" and relatively rare - THEN those taxes would have been reported to you on the 1099-B.  Ask your payroll department.

Are you thinking that you have to report the taxes you think were withheld by the broker because otherwise you're getting "double taxed"?  If that's the case the problem is that you are using the wrong basis to report the sale.  The broker is only reporting you "out of pocket" cost, not your correct basis of the sum of your out of pocket cost and the compensation created by those shares.

Tom Young

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