1099-B and W2 Box12(v) : Double counting income

[cutemouse]

I have stock options that I exercise and sell on same day for a public company. This income is reported in W2 Box-12 with code V(Income from exercise of non-statutory stock options).

I also get corresponding 1099-B from the brokerage company. It shows the proceeds, cost-basis, gains/loss etc.

I am using Turbotax Premier, as was in previous year. This reporting of this type of stock sale is always stressful, as it double counts, unless I fix it in Turbotax flow and I have been vary of it every year. What that does is this: It updates the Form 8949 (Part I), with column (g) in the "Amount of Adjustment" column with similar -ve value. 

col (f) will have code B

col(g) will have -ve value of.

This neutralized the double counting.

However, this ability to adjust seems to be missing in this years Turbotax Premier, or am i missing something obvious?

[DavidD66 · Accepted solution]

When you exercise and sell NQSOs, the broker does not report the correct stock basis, which is the value of the stock on the date of exercise.  As a result, (and as you seem to be aware) you have to adjust the cost basis reported on the 1099-B.  If you imported your Form 1099-B, you may not have the option to adjust the cost basis.  If that is the case, you will need to delete your Form 1099-B and enter it manually.  You will then have the option to adjust the cost basis to reflect the amount that was included in your income.  

[cutemouse]

This is exactly what I happened as you predicted - automatically imported 1099-B and W2 but got concerned when there was no way to "correct" the basis. Since TT did not complain and during 1099-B, there was no question to prompt it, I assumed all was well and correct. I filed my tax return for this year, and sadly the realization of this screw up happened when looked at older tax filing and compared the forms. (I owe a lot due to this mistake).

What do I do now?

[PatriciaV]

After your original e-filed return has been accepted and processed by the IRS, you can file an amended return to correctly report the basis. In general, you should wait until you have received your refund (if any) or your tax payment has cleared your bank. Waiting those extra days prevents the IRS from confusing which filing is the original return.

[cutemouse]

@PatriciaV Thank you for the guidance. 

My original e-filing is accepted by Fed and State and I had scheduled my tax payment to be in 04/14/2025. Should I wait until 04/14 to file the amended return or can I do it now?

ps: the amended return shows a refund. Refund is around 1/2 of tax due payment on 04/14/2025. It feels weird that I could get refund earlier than tax payment.