Sale of NQ Stock Options

[cmarkjones]

I sold NQ Stock Options in 2021. The Income , Taxes and Capital Gains are reflected in my W2. When I enter my 1099-B for the stock options sale. I appears to count my income and capital gains and taxes twice. Do I have to enter a 1099-B for my stock options sale.  

[cmarkjones]

If I enter YEs to sale of NQ company stock, it raises my refund, the income and capital gains look correct but it looks like it still double counts the taxes withheld.

[RaifH]

Yes, you do want to enter the 1099-B for the transaction. 

You will want to use the reported basis and then adjust it. To report this transaction correctly:

1. In the Federal > Income & Expenses > Investment Income section of your return, click Start/Revisit next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
2. Answer Yes and then select stocks. Import or enter your transactions manually. 
3. For the employer stock transactions, make sure to select Yes to Do these sales include any employee stock?
4. Under What type of investment did you sell? Use the pulldown menu to select NQSO.
5. Enter the rest of the information as it appears on your 1099-B and hit Continue.
6. Under Adjust your cost basis to ensure your best outcome if you have the basis for the shares you sold, click on I found my adjusted cost basis and enter the amount from the supplemental information.

The compensation element and the taxes withheld are correctly reported on your W-2, as you said. If these stocks were sold to cover taxes and you have not sold additional shares, this sale has no tax consequence because the cost of the stock and the sales price will be the same. For more information about the tax treatment of NQSOs, read this article.

[cmarkjones]

SHould I not reenter my state and fed taxes withheld in the 1099-B form since they are already in the W2 and appeare to be double counted.

[cmarkjones]

Turbo Tax indicated that I have to wait on form 8801- Credit for Prior Year Minimum Tax. It says it will be available for mail on 3/10/22 and available for e-File on 3/11/22. Does that mean it will be available for  me to use on my downloaded version of Turbo Tax on 3/11/22?

[MayaD · Accepted solution]

The form will be available for you on 3/10/2022 if you want to print and mail your return. To e-file, you have to wait till 03/11/2022.