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BigMac0210
New Member

1099-B

My 1099-B has a section that shows "reported to IRS" and a section that shows "not reported to IRS" and both of these quantities are included in the W2 - do I have to report these quantities?

3 Replies
DJS
Level 7
Level 7

1099-B

Yes, you do have to report all your items on Form 1099-B on your tax return;  the fact that basis is not listed doesn't except it from the reporting obligation. The brokerage firm may not know the cost basis of a security transaction and therefore is not able to report it to the IRS, but you have to report it and provide that basis information from your own records. 

 

Form 1099-B: Proceeds From Broker and Barter Exchange is a federal tax form that itemizes a taxpayer's gains or losses in every transaction made over the course of a tax year. The broker or barter exchange must mail a copy of the form to all clients by January 31st of the year following the tax year.

Taxpayers transfer the information from Form 1099-B to Form 8949 to calculate their preliminary gains and losses. The result is entered onto Schedule D of the tax return.

 

Answers are correct to the best of my ability but do not constitute legal or tax advice.
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6274284435
Returning Member

1099-B

My W2 included in Box 1 as wages "tradeable option sale" stocks that is also in my 1099-B.  Entering both W2 and 1099-B information in Turbo Tax appears to be double counting increasing my wages.   Is there something I need to do in Turbo Tax to prevent double counting these capital gains which is included also in my W2 that increases my wages?

DeanM15
Expert Alumni

1099-B

You do need to enter both the W2 and the 1099B. Because these options were part of your payment for your employment, it is included in box one of your W2 and taxes are withheld.

 

You should have a supplemental statement that came with the 1099B letting you know what the basis is on the option transactions. Generally, the 1099-B itself will come with the basis as $0.00. You will need to change the basis of the option sales as you have already paid taxes on the transaction in your W2. 

 

@6274284435

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