ESPPDD and 1099-B

[saiko8989]

I have a 1099-B (corrected) from Charles Schwab related to my ESPP stock sale. However, my W-2 also have ESPPDD listed. How do I report the 1099-B form in my tax returns so that I don't get double taxed.

[TomYoung]

If your W-2 reports all the compensation created by the sale of stock acquired via the ESPP and you know the correct basis number to use for your sales, (discounted out of pocket cost to acquire the stock + compensation created by the sale), then simply enter the 1099-B exactly as it reads, wrong basis and all, and then correct the basis.  To do that you click on the "I'll enter additional info on my own" blue button.  On the next page enter the correct basis in the "Corrected cost basis" box.  The correct basis is (number of shares sold) x (correct per share basis, which includes the compensation per share)

TurboTax will report the sale on Form 8949 "as reported by the broker" but will put an adjustment figure into column (g) of the Form, a code "B" into column (f) of the Form, and the correct amount of gain or loss which includes the adjustment.

Getting the basis properly stated fixes the potential "double income" reporting.

Tom Young

[oramapxc]

This is helpful but could you please clarify "To do that you click on the "I'll enter additional info on my own" blue button”. Where exatcly this blue botton is? I am refering to the CD version of 2018 here. Thanks in advance!

[Critter]

To enter an investment sale from a brokerage account (1099-B), follow the steps below.

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on
• Under Investment Income
• On Stocks, Mutual Funds, Bonds, Other, click the start or update button

[Critter]

Then follow the screen instructions ... 

[oramapxc]

thanks a lot!