Form 8949

Forum|Forum|3 years ago
March 16, 2023
2 replies
7 views

I sold stock option last year from my company. I have the 1099-B for last year's transaction and the 3922 from when the stock was purchased. Now I just received an 8949 stating that part of the purchase price was actually included in my W2 salary.

I did NOT see this scenario as an option while entering this info into TurboTax.

Do I have to go into Forms, find the 8949 form, and manually Override the values TT put into column g? Yes, make sure the code in column f is set to 'B'.

Or should I just enter the cost basis from the 8949 sheet that will be populated into column e?

I'm hoping this makes sense.

Thanks in advance.

Best answer by DavidD66

If you exercised a non-qualified stock, the bargain component (the difference between the amount you paid, and the market price) is considered ordinary income and is included in your wages and reported on your W-2 box 1. Your cost basis is the market price at the time you purchased it, and not the exercise/strike price that you paid. Reporting rules require the broker to report the cost basis as the strike price. Therefore, you have to adjust the cost basis when you are reporting the sale. You will need to edit your transaction. There is a page in the 1099-B entry section, after you enter the transaction, that says "Select any less common adjustments that apply". One of those options is "The the cost basis on my statement is incorrect" Check that box, and click continue. That will trigger the program to open a box where you will enter the "Corrected cost basis".

D

DavidD66Answer

Level 15

If you exercised a non-qualified stock, the bargain component (the difference between the amount you paid, and the market price) is considered ordinary income and is included in your wages and reported on your W-2 box 1. Your cost basis is the market price at the time you purchased it, and not the exercise/strike price that you paid. Reporting rules require the broker to report the cost basis as the strike price. Therefore, you have to adjust the cost basis when you are reporting the sale. You will need to edit your transaction. There is a page in the 1099-B entry section, after you enter the transaction, that says "Select any less common adjustments that apply". One of those options is "The the cost basis on my statement is incorrect" Check that box, and click continue. That will trigger the program to open a box where you will enter the "Corrected cost basis".

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