☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Mar 30, 2020 8:58:04 AM

TurboTax is under estimating FMV of a NQ option exercises. Can I edit those values manually to match those values provided the NQ exercise statement?

As I'm in the final staged before filing my taxes, Turbo Tax is telling me the sale price for NQSO cannot exceed FMV for the underlying stock at the time. However, the FMV TurboTax is estimating is not accurate. The NQSO exercise statement from my company is different. How should I proceed here: can I manually enter FMV provided by my company in the statement or should I ignore the review error?

0 1 339
1 Replies
Expert Alumni
Mar 30, 2020 10:24:03 AM

If you ignore the review error, you won't be able to e-file. You can correct the entries in TurboTax based on the statement that you have. 

 

Here is how to review that:

  1. Use the search box in the upper right corner to search for 1099-B.
  2. Click on Go to 1099-B.
  3. Click Edit to the right of the broker's name.
  4. Continue until you see the summary of sales.
  5. Click Edit, or the pencil icon, to the right of the transaction(s) you need to change.
  6. Continue until you get to, Review your purchase info for the shares you sold, click Edit to the right.
  7. Continue until you get to, Let's get some purchase (exercise) info about this NQSO sale.
  8. On this screen the Exercise Price multiplied by the Number of Shares, should equal the fair market value. That number shouldn't be more than the basis you entered.

 

You can either make the corrections you need on this screen, or you can delete the entry and re-enter it using your information and select I know my cost basis and need to make an adjustment on the second screen. 

 

You can delete the transaction by clicking on the trash can icon.