Employee-owned company gave my wife company stock as a bonus.

[Murowchickj]

The employee-owned company my wife works for gave her company stock as a bonus.  She received a 1099-B form with the basis, (Box 1e), proceeds (Box 1d), STOCK in Box 1a, Long-term gain or loss in Box 2, the dates acquired and disposed (Boxes 1b and 1c), "Applicable checkbox on Form 8949" = E. 

    I have not found where the values should be entered, nor do I see an appropriate choice among the kinds of stock since she didn't buy the stock--it was given as a bonus.

[ThomasM125 · Accepted solution]

You would enter the 1099-B form as an investment sale, in the Investment Income section. Look for Stocks, Mutual Funds, Bonds, Other.  The income from the bonus should be entered on her W-2 form in box 1 as wages. There is usually an amount in box 14 that references the amount. If this was done, the 1099-B would normally reflect only a modest amount of capital gain income, as most of the income would be ordinary and thus reported on the W-2 form.

You can enter the sale as a sale of stock. If the cost basis appears low, you may need to adjust it by adding the income reported on the W-2 form. You will see an option to adjust the cost basis after you enter the stock sale. The basis entered should include the income reported on the W-2 form.