Employer stock sales on both W-2 and 1099 are double counted and taxed

[TaniaP]

As I wait for an answer to my question in my previous post, I'm going to continue on with my stock option sales.

This is how my 1099B looks (and I'll just put info for one of the sales):

1a. Description of Property = 33.0000 Sale

1b. Date Acquired = 04/03/2019

1c. Date Sold or Disposed - 04/03/2019

1d. Proceeds = 6,199.88

1e. Cost Basis - 3,131,37

1f. Accrued Market Discount = 0.00

1g. Wash Sale Loss Disallowed = 0.00

Gain or Loss = 3,068.51

So in TT, this is how I entered the information:

Sales Section = Short-term basis reported to IRS (covered)

Sales Info (Boxes 1a-1e):

What type of investment did you sell? I answered Nonqualified stock options (NQSO)

Box 1a = 33.0000

Box 1b - the date this investment was acquired = 04/03/2019

Box 1c - date sold or disposed = 04/03/2019

Box 1d - 6,199.88

Box 1e - 3,131.37

and then I checked the box "The cost basis is incorrect or missing on my 1099B"

I checked this box because the cost basis is incorrect (which is what I'm told to do).

[klide121]

Is there updated information?

[JamesG1]

You would have an employee stock purchase plan sale reported on your W-2 as well as reported on a 1099-B 

only if you sold stock that was purchased through an ESPP (Employee Stock Purchase Plan).

In such a case, the sale will be reported on Form 1099-B, which you should receive from your brokerage around tax time (early February is typical). Enter the 1099-B to report the sale on your tax return.

If you merely purchased (but didn't sell) ESPP shares, there's nothing to report.

Hopefully you received information about your benefit from your employer and/or your broker.

Click on the Search magnifying glass in the upper right hand corner of the screen to find information about how to enter your particular benefit.

See also this TurboTax Help and this, How do I enter Employee Stock Purchase Plan sale in TurboTax?

[paul_1959]

Need clarification on steps for 2020 (using TT Home & Business) on this subject, to be clear I sold Employer stock plan shares - I received a 1099-B which includes an ordinary gain & a capital gain and a W2 with the same amount for the same ordinary gain in box 1 and Box 14 valued with QDI (Qualified Dividend Income) same amount (ordinary gain). How do I make the adjustment and eliminate the duplicate income?  

[Lizzy888]

TomYoung, would you know how to account for a Wash Sale Disallowed Loss resulting from exercising options that are Non-Qualified Stock Option Share grant type?  I know I adjust the cost basis to arrive at the Adjusted Gain or Loss of my 1099B.  Usually that amounts to the commission and fees as a short term loss.  I am not sure how to account for the Wash Sale Disallowed Loss. 

The brokerage firm's supplemental information form shows a Wash Sale Disallowed Loss of $7.01 and an adjusted Loss of -$7.01.  Would the adjustment be zero to account for the disallowed dollar amount (which happens to be the same as the adjusted loss)?  I have another sale that isn't the same amount.  Wash Sale Disallowed Loss of $2.58 and adjusted loss of -$20.72.  That seemed odd.

If you know how to enter properly, I would greatly appreciate the guidance!  Thank you.