Supplemental 1099-B

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I have a Supplemental 1099-B which shows differing adjusted cost basis for RSUs and QSP/ESPP stock sales. The difference is in the break out of "ordinary income", where the shares were not held long enough. Where do I report the "ordinary" income that is reported on the supplemental 1099? Turbo Tax only asks or the fields on the original 1099-B, not what is given on the supplemental.

MaryK4Answer

Alumni - Intuit

You do not report the "ordinary income" from your Supplemental 1099-B as a separate income entry in TurboTax. Instead, you use that information to adjust your cost basis on the investment sale screen. This is necessary because most standard 1099-Bs report a "basis not provided to the IRS" or a "0" basis for RSUs and ESPPs, which would cause you to be double-taxed on the ordinary income already reported on your W-2.

The simplest way to make the adjustment:

Enter the sale as a "standard" stock sale.
Check the box "I need to add more info about this sale" or "The cost basis is incorrect on my 1099-B."
Enter the Corrected Basis from your supplemental statement directly into the "Corrected Basis" box.

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MaryK4Answer

Alumni - Intuit

The simplest way to make the adjustment:

Enter the sale as a "standard" stock sale.
Check the box "I need to add more info about this sale" or "The cost basis is incorrect on my 1099-B."
Enter the Corrected Basis from your supplemental statement directly into the "Corrected Basis" box.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"