ISO sales are included in W2. I entered cost-basis to stop double-counting in wages, but they're still double-counted on AMT sheet. How do I prevent this? Is this a bug?

[dkallman]

My company always includes ISO sales income on my W2. When I import eTrade, this gets double-counted. I can "zero out" the income from eTrade by entering the cost basis. However, this year, after zeroing it out, my taxes still went up by a lot. After digging in, this is due to AMT. On the AMT sheet, my "net alternative minimum taxable income" is my W2 income + my eTrade ISO sales income, so it's still double counting the ISO sales. How do I fix this, or is this a turbotax bug?

[JohnW222]

Please see the TurboTax Help article “How do I fix the basis for an NQSO sale that was also reported on my W-2?” for guidance.

[dkallman]

Hi @JohnW222 , thanks for the reply. I read the details of the help article you linked. Item v in box 12 is not listed on my W2. However, my company provides form 3921. In the past, I've entered in all the details from my 3921 to fix the cost basis, and this has prevented the ISO sales income from double-counting. This year, after I entered the details from the 3921 to correct the cost basis, my investment income shows as $0 on the "wages and deductions" summary page, so it's back to single counting. However, on the 6251, it is still double-counted. 

I'm a bit frustrated because when I call TurboTax support they tell me this is an issue that needs a CPA and I need to upgrade to TurboTax Live. However, I think it's either something I'm entering incorrectly or a bug with the product.

[dkallman]

All fixed now. For the past few days the eTrade integration was down. Today it came back up. When I used the import instead of typing it in myself it must've included additional information that prevented the ISO sales from counting toward AMT.