I have an 12v entry in my w2 where it shows that I paid the taxes on the stock options however I also have a 1099b which shows no taxes entered. This leads to duplication of taxes

rgallagher33 — Thu, 06 Jun 2019 06:17:25 GMT

The problem is that you are using the wrong basis to repo...

TomYoung — Thu, 06 Jun 2019 06:17:26 GMT

The problem is that you are using the wrong basis to report the sale, not that you somehow have to report some taxes somewhere.

The exercise of the stock options, not the sale of any of the stock acquired, creates compensation income and the dollar amount in Box 12 coded "V" is telling you that amount. Divide that dollar amount by the GROSS number of shares exercised - not the net number of shares received after shares were withheld or sold "for exercise" or "for taxes" - and you've got the correct per share basis to use in your reporting of shares sold.

These days the brokers are only required to report your "out of pocket" basis on the 1099-B, not your actual basis as determined above. If you simply enter the 1099-B exactly as it reads you end up reporting income twice: once as compensation reported on the W-2 and then again as an overstatement of capital gain reported on the 1099-B.

Enter the 1099-B exactly as it reads and then click the blue "I'll enter additional info on my own" button. On the next page enter the correct basis in the "Corrected cost basis" box. The correct basis is (# of shares sold) x (per share basis for that lot).

Tom Young

(SINCE THE DEVELOPERS CHANGE THE SECURITY SALE INTERVIEW EVERY SINGLE YEAR I'LL NOTE THAT THIS ANSWER'S DIRECTIONS ON HOW TO CORRECT THE BASIS FOR THE SALE PERTAINS TO THE 2016 INCOME TAX YEAR. I'M SURE THAT THE INTERVIEW WILL CHANGE IN THE YEARS AFTER THAT.)

topic I have an 12v entry in my w2 where it shows that I paid the taxes on the stock options however I also have a 1099b which shows no taxes entered. This leads to duplication of taxes in Get your taxes done using TurboTax

I have an 12v entry in my w2 where it shows that I paid the taxes on the stock options however I also have a 1099b which shows no taxes entered. This leads to duplication of taxes

The problem is that you are using the wrong basis to repo...