My father-in-law worked for Publix Super Markets part-time until his retirement in June of last year 2020. Publix has a profit sharing plan or employee stock ownership plan which rewards their employees with the company's privately held stocks. When he retired, he opted to cash out the stocks he was rewarded over the years he's worked with the company. Having said that, he received a Form 1099 B for the sale of the stocks and a Form 1099 R for the distribution. The amount reflected on both forms is from the sale of the stocks. So, I was wondering if anyone can help shed a light as to how to report said forms. If both forms are taxable income, why is there a need to report the same income twice in two different forms? Additionally, reporting both forms as income will be redundant and appears as double taxation. Help, please! Your anticipated help will be greatly appreciated.
Form 1099-R reports a distribution of Retirement Income. It does not include any income from Stock Sales.
You need to enter both the 1099-R and the 1099-B in your father-in-law's return.
Click this link for more info on How to Enter a 1099-R.
Click this link for instructions on How to Enter 1099-B.
This article gives detailed info on Employee Stock Grants.