The earnings from selling NQSO's are showing up twice on my return, once in the W2 and then again in the 1099-B. How do I fix this?

Forum|Forum|7 years ago
June 3, 2019
2 replies
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TurboTax Premier Online

Best answer by TomYoung

You fix this by using the correct basis when reporting your sale.

Your correct per share basis is the sum of your per share "out of pocket" cost plus the per share compensation created by the exercise. In other words your correct per share basis is the same as the per share "fair market value" used by the employer to calculate that "compensation" you are seeing on the W-2.

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.)

T

TomYoung

Answer

Alumni - Champ

You fix this by using the correct basis when reporting your sale.

Your correct per share basis is the sum of your per share "out of pocket" cost plus the per share compensation created by the exercise. In other words your correct per share basis is the same as the per share "fair market value" used by the employer to calculate that "compensation" you are seeing on the W-2.

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.)