1099B stocks sold

[redmarlen]

I am getting stocks from Microsoft as my employer as part of my compensation, they are deposited on my account without any conditions/vesting periods, etc. I sold those stocks, not stocks I bought within ESPP plan. Turbotax is asking me ''Do these sales include any employee stock?This includes ESPP, RSU, RS, NQSO, and ISO.''? What shall I reply? Microsoft is my employer, but those stocks were not part of any plan accordong to Fidelity, Fidelity classify them as "deposit only" and not part of any pla. How shall I answer Turbotax question in my case?

[ThomasM125]

Reply yes, that is employee stock. 

The value of the stocks will be listed on your W-2 form as taxable income. It is possible the cost basis reported on your Form 1099-B will be incorrect, as it may not include the associated income that is reported on your W-2 form, so you may need to adjust the cost basis reported on the Form 1099-B. 

When you enter the Form 1099-B in TurboTax, there will be a screen where you enter the sales proceeds and cost basis and you will see an option to indicate that the cost basis is incorrect or missing on the Form 1099-B. Check that box and on another screen, you can enter the correct cost basis or request that TurboTax assist you in determining what the correct cost basis it. 

[redmarlen]

So I shall reply "Yes" even if this stocks are not part of ESPP, RSU, RS, NQSO, and ISO?

[AmyC]

Yes. The stock is from your employer so it is definitely job related and that can change the basis reported. It seems like the stock must be a direct grant if it isn't anything you mentioned above -particularly RS. You will select Other. Enter the basis included in wages. 

[redmarlen]

There is no "other" option there. Options to choose from which type of investment I sold are: ESPP, NQSO, ISO, RSU, RS, Stock (non-employee), mutual fund/index fund/ETF, Bond, Options.  If I choose Stock non-employee options how do I got it are: purchased, inherited, received in a divorce, gift, short sale, from life insurance company. What shall I choose if I received stock from my employer as part of my compendation package?

[DawnC]

If the stocks are part of your compensation, there should be reference to the compensation element on your w-2?    You most likely have RSUs that vested immediately or a stock award - both of these would be considered employee stock.   Verify what kind of plan it is with your employer at Microsoft and/or check out the article below.  

How do I find and enter the cost basis for my RSU or ESPP sale?