How to Report a 1099B from State Unclaimed Property?

[marnoldy14]

We received a 1099B from the state of Wisconsin Department of Revenue (the Payer) after claiming some unclaimed property through their website. The 1099B was issued because Wisconsin sold the stocks of Disney Co that my wife had received as a gift when she born.  We received the money this tax year (2020) but the 1099B we received says the stocks were sold in in April 2017. I tried to enter this form under the 1099B section of turbo tax but it appears to be missing  information (such as long term or short term, cost basis etc.) The only information this 1099B form provides is that it was a noncovered security, the description of the stocks, the date sold, and the proceeds. Additionally when I try to enter the 2017 date sold into turbo tax it tells me the date sold must be from 2020. Should I be entering this as a 1099B or a different way in turbo tax. Separately, neither my wife or I reside in Wisconsin anymore (since 2012). Do we now need to file a Wisconsin State Tax Return since we received this unclaimed property income from them? We have no other association with Wisconsin except for claiming the unclaimed property. Thanks in advanced for your answers!

[MarilynG1]

You would need to either Amend your 2017 return to add the 1099-B you received from the State of Wisconsin, or contact the State to issue a Corrected 1099-B, since you did not actually receive the funds until 2020. 

Here's how to How to Amend a Prior Year Federal Return.

You would need to file a Non-Resident State Return to Wisconsin to report the income.

Click this link for instructions on How to File a Non-Resident State Return. 

Since your wife received the stock as a gift,  this link gives info on Cost Basis of Gifted Stock.   This would be considered 'long-term' as the stock was held for over one year.

Be sure you indicated that you did not purchase the stock in the Investment section interview. 

[marnoldy14]

Thank you for your response. Bit of headache for what we received. Would the WI state return be for 2017 when the stock was sold or for 2020 when they issued us the check? If 2020, where would we enter the income into turbo tax?

[a320]

Nice that you received a response.

I received a 1099B for unclaimed property (stock) that the state of Wisconsin sold in 2019 but did not issue me a check until 2020.  

Turbotax is not allowing me to enter a 2019 transaction date (block 1c) with with the 2020 1099B .

[DianeW777]

It was 2020 income since you received he check in 2020. You should report the income in the year you got the check. As to where to report the transaction in TurboTax ? It should be reported as a sale with no cost, unless you have a record of the item's cost. here's the path to follow to enter the transaction in TurboTax:

1. Start at FEDERAL TAXES, then select Wages & Income 
2.  You might see "I'll choose what I work on" > Scroll to Investment Income 1099 B, Stocks, Bonds, Mutual Funds, Other 
3.  Answer the question Did you sell any investments?   
4.  Did you get a 1099 B  yes, then select  "I'll type it myself'
5.  Enter the State as bank or brokerage
6.  Enter 1099 B info as Sale #1 with cost data if you have it, otherwise, zero cost.        

[a320]

The anwer you gave was incomplete.

TurboTax does not allow me to enter the date sold or disposed (1c) from 2019 as stated on my 1099B.

I have a 1099B from 2020 for unclaimed property that was sold or disposed by the state of Wisconsin in 2019. 

How do I get Turbotax to allow me to input a date from 2019 in bloc 1c?

[Hal_Al]

@a320 

For date sold, enter the date in 2020 when you received the money.