Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Cookingardener
New Member

Does turbo tax correctly calculate cost basis adjustments for NQSO sales? It looks like it doubled my loss, and now I can't e-file.

I went ahead and selected file by mail, but now I want to go back and correct the mistake that Turbo Tax has made.  But its forcing me to amend my return... I'm pretty frustrated since this was not my error in entry.
4 Replies
Cookingardener
New Member

Does turbo tax correctly calculate cost basis adjustments for NQSO sales? It looks like it doubled my loss, and now I can't e-file.

If I go back in and manually calculate my adjustments and use those, it is correct.  My losses aren't double.  What is TurboTax doing that it doubled them?  And how do I get them to allow me to actually fix my return instead of file an ammendment?  

DavidD66
Expert Alumni

Does turbo tax correctly calculate cost basis adjustments for NQSO sales? It looks like it doubled my loss, and now I can't e-file.

To get back in to your return after you've filed or finished to print and mail, you can "add a state" to make changes:

 

1.    Sign In to TurboTax Online

2.    Click "My TurboTax" menu

3.    Press "Visit My Tax Timeline" 

4.    Under the "SOME THINGS YOU CAN DO" heading, choose "Add a state" (you're not really adding a state, this allows you to get back into your return). 

5.    Complete/correct as needed.

 

TurboTax has an interview for the sale of employer stock, including NQSO.  Do not import you Form 1099-B with the sale of the ESPP stock.  Instead, enter it yourself.  To do so in TurboTax, (if using Online be sure you are logged in to your return): 

  • Click on Search
  • Type “1099-B“ in the Search Window and hit Enter
  • Click on Jump to 1099-B
  • Click on + Add More Sales
  • Answer Yes to: "Did you get a 1099-B or a brokerage statement for these sales?"
  • Click on "I'll type it in myself"
  • Enter your Brokerage name
  • Answer Yes to "Do these sales include any employee stock?"
  • Click the box to indicate the number of sales. 
  • Click Continue on screen with "We strongly recommend entering your sales from 'brokerage' one at a time"
  • Continue on the screen with "Now we'll walk you through entering the info on your 'brokerage' 1099-B" and enter the details of your stock sales.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
fhobbs
Level 1

Does turbo tax correctly calculate cost basis adjustments for NQSO sales? It looks like it doubled my loss, and now I can't e-file.

Premier 2021 is not using the proceeds from cashless exercise on line 14 of the W-2 to calculate the adjusted basis for the granted stock options, but is somehow correcting that figure in the background.  My adjustment is not exactly equal to the commission, but there is also rounding going for the Fair Market Price per share, which my broker reported to the ten thousandths of a cent.  The result was a loss that is about double the commission.  I wouldn't be surprised if the commission was being subtracted twice.  Much easier to do in Deluxe where you manually enter the Adjustment (for proceeds reported on your W-2) - if you remember to do so.  

MarilynG1
Expert Alumni

Does turbo tax correctly calculate cost basis adjustments for NQSO sales? It looks like it doubled my loss, and now I can't e-file.

If you are having issues entering Employee Stock Sales, delete your entries in this section and enter your 1099-B as a regular stock sale.  When asked if 'employee stock', say No.

 

Enter your 1099-B as shown and check the box to indicate 'cost basis is incorrect' so you can then enter the correct Cost Basis (FMV on exercise date).  

 

The compensation element is already reported correctly on your W-2.  The amount in Box 14 is for your information only. 

 

Click this link for info on How to Enter 1099-B

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v