Employer gave 1099 MISC for buyback of shares instead of a 1099b

I left company xyz 3 years ago. At the time i left i had 100 shares fully vested (already filed form 83b at time of hire so no taxes paid to date on it). These shares were granted to me with a price of $0.

Last year company xyz reached out to me regarding share buyback. I agreed and they gave me $10000 for my 100 shares. Great ! Now it is tax time and they have sent me a 1099 MISC (i have never been self employed) when I am expecting a 1099 B so i can report capital gains tax. I reached out to them but they are unresponsive.

How can i file my taxes properly on Turbotax.

1) Do i just manually make up the numbers to the best of my knowledge and fill out a 1099b section in turbo tax

2) If yes then what about the 1099 MISC section in turbotax. Since the former employer already issued a 1099 MISC then the IRS is expecting this, i dont want to be in trouble

3) If i fill out both the 1099b and 1099 misc then i will be double taxed right? That cannot be right either.

251

Expert Alumni

Mar 27, 2023 5:41:30 AM

You may report the stock sale without receiving an IRS form 1099-B. You may also report the IRS form 1099-MISC income and reverse the entry with an explanation for the IRS to review.

In TurboTax Online, follow these steps to access IRS form 8949 / Schedule D Capital Gains and Losses:

Open or continue your return.
Select Federal down the left side of the screen.
Select Wages & Income down the left side of the screen.
Select Show more to the right of Investments and Savings.
Select Start / Revisit to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2021?
- If you land on Your investments and savings, select Add investments.
At the screen Relax. We got it, select Continue.
On the Let's import your tax info screen, select Enter a different way.
On the OK, let's start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue.
At the screen Which bank or brokerage, enter the information.
Do these sales include any employee stock, enter Yes.
Do you have more than three sales, enter No.
You will select Enter one by one.
You will now be able to enter your sale information.

Follow the steps below to report income on an IRS Form 1099-MISC.

Select Federal from the left side menu.
Click on Wages & Income.
Scroll down to Other Common Income. Click Show more.
Click Start / Revisit to the right of 1099-MISC.
Enter a description under Describe the reason.
Select 'None of these apply' at the screen Does one of these uncommon situations apply?
Select 'No' at the screen Did the income involve work.
Select 'No' at the screen Did the income involve an intent to earn money?

The entry will be reported:

on line 8z of Schedule 1 of the Federal 1040 tax return, and
on line 8 of the Federal 1040 tax return.

Follow the steps below to reverse the 1099-MISC income.

Down the left side of the screen, click Federal.
Down the left side of the screen, click Wages & Income.
Click Show more to the right of Less Common Income.
To the right of Miscellaneous Income, 1099-A, 1099-C, click the Start / Revisit button.
To the right of Other reportable income, click the Start / Revisit button.
At the screen Other Taxable Income, enter a description such as “1099-MISC income reversed” and a negative amount.

View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

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Employer gave 1099 MISC for buyback of shares instead of a 1099b