topic ESPP Cost Basis Not Modified on Form 8949 in Get your taxes done using TurboTax

ESPP Cost Basis Not Modified on Form 8949

jnjmarshall — Tue, 16 Feb 2021 02:57:15 GMT

I have ESPP stock that has a cost basis reported on ETrade's 1099-B, but is incorrect. All of these sales are Short-Term covered (Box A selected on 1099-B).

I did the step-by-step in TurboTax expected Column g on Form 8949 to provide an Adjustment (as has been done in previous year), but no matter how I input the information in TurboTax, Column g remains blank.

TurboTax does ask if the total of what should be in Column g is reported on my W2, which it is.

Any help would be appreciated.

Re: ESPP Cost Basis Not Modified on Form 8949

jnjmarshall — Tue, 16 Feb 2021 03:01:14 GMT

I am not sure if I am supposed to just "hand edit" the 8949 form in TurboTax directly since it isn't been correctly calculated.

Re: ESPP Cost Basis Not Modified on Form 8949

fanfare — Tue, 16 Feb 2021 03:27:31 GMT

there is no way to edit or override form 8949.

You must go through the panels or the worksheets.

delete that transaction and enter it again.

Re: ESPP Cost Basis Not Modified on Form 8949

jnjmarshall — Tue, 16 Feb 2021 03:33:41 GMT

Thanks for the response, but that didn't help. TurboTax continues to ignore the ESPP adjustment in Form 8949. Should I just put the adjustment Cost Basis in TurboTax input of Box 1e (making it different than what ETrade reported on 1099-B)? That would make the Schedule D Cost Basis correct.

Re: ESPP Cost Basis Not Modified on Form 8949

jnjmarshall — Tue, 16 Feb 2021 16:08:24 GMT

After trying different solutions, the only one I was able to get TurboTax to have Form 8949 come out correctly is going to Forms and directly editing the Capital Gain (Loss) Adjustments Worksheets by selecting Form 1099-B reports and incorrect basis in Part III. By doing this, TurboTax correctly updated Form 8949.

I believe this is an acceptable workaround to what I can't get TurboTax to do directly (which it has done in previous years).

Re: ESPP Cost Basis Not Modified on Form 8949

neilandrohini — Sun, 14 Mar 2021 03:52:22 GMT

Had the same issue as jnjmarshall, and your solution (updating 1099-B) solved the problem so that 8949 was correct (and ultimately the 1040). But TurboTax [EasyStep], still gives an error for the ESPP interview since the cost basis is blank (since we used schedule D). Did you see the same thing? Ultimately all the forms are now correct (except the 1099-B quick entry table cost basis, but when one clicks on the Capital Gain (Loss) Worksheet all is correct [cost basis from broker and adjustment amounts]). Just confused as to why the TurboTax Easy Step wouldn't put the (non adjusted) cost basis but still correct to adjusted basis.

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