You don't have to pay it again. All you have to do is adjust your basis when going through the 1099-B stock sale information.
When you purchase
stock via the employer incentive program your basis is amount you paid to receive the stock (it might be zero) plus
compensation element (W-2, box 12, code V) created either by the purchase or sale of the
stock. If the sale is covered (basis
reported), the broker reports purchase price but omits the compensation element
amount; so the compensation is reported twice – once via 1099-b as it is and
again through W-2. You must add the
compensation to the basis of the stock being sold. If the sale doesn’t report
the basis, just enter correct basis. If the form 1099-B reports incorrect basis (the amount without the compensation
In TurboTax, when going through the stock sale, the quickest way to fix this is just to add correct basis manually Using I’ll enter additional info on my own.
-
Federal Taxes (Personal if SE
version)
- Wages & Income
- Investment Income
- Stocks, Mutual Funds, Bonds, Other - continue through your stock sale; when you have entered description, date sold, acquired, sale proceeds and cost or other basis (that you have on form 1099-B), select I'll enter additional info on my own; then enter the correct basis (the basis reported on 1099-B plus your amount from W-2, box 12, code V) in the corrected cost basis field.
TT
will report the sale on form 8949 as it is reported by the broker but will have
adjustment in column (g) , code B and correct amount or gain/loss.. sometimes TT
puts code O instead of code B… - that is acceptable reporting as well.
