Should proceeds from stock sales appear on w2 and then also a 1099-B?

[airtas]

Stocks given to me from my employees are appearing on my w2. I assume this is normal but aren't  I getting double taxed and double income when it is reporting on the  1099-B?

[RichardG · Accepted solution]

With employee stock options there are two taxable transactions.  First, when the shares vest--that's ordinary income reported on your W-2.  Second, when you sell the shares, which often occurs on the same day.  The sale is reported on Form 1099-B.  The key to avoiding double taxation is to add the ordinary income shown on your W-2 for the shares vesting to your basis for the subsequent sale.  In most cases this results in little or no gain or even a small loss due to sales commission.

Please follow this link for more information.  https://turbotax.intuit.com/tax-tools/tax-tips/Investments-and-Taxes/Incentive-Stock-Options/INF1204...

[Carl]

YOu only enter income once, and that's it. Par chance, on the W-2 is it reported in box 12 with code "V"? If not, then how is it reported on the W-2?

[NDEE14728]

@Carl 

I have the same question.   Yes, on the W2 the amount is reported in box 12 with "V".   on the 1099-B, it has a bigger amount that includes both ESPP shares and Stock Options shares.  The amount on W2 appears to only reflect the Stock Options and not the ESPP shares exercised.   

How should I input the accurate info into TurboTax?   When I tried to import it, it just loaded in everything and causing double counting.  

Thanks!

[JamesG1]

I'm wondering whether you saw line 5 This sale involves an employee stock plan as you entered the 1099-B information?

See this Best answer.

[qinhh]

There is no 'V' in 2020 W2, box 12

[qinhh]

What I did: import 1099 B from my broker, edit, follow the questions to the point it asks do you have a 3921? Answer yes, then reenter the data you saw/entered in the 1099B with those in 3921, and I end up with a gain of zero '0'

[ThomasM125]

Normally, you would have a $0 gain from the entry of your form 1099-B when you sell employee stock as soon as your acquired it, since the compensation portion of the gain is on your W-2 form, and you don't have any appreciation in the stock since you sold is as soon as you acquired it. So, it looks like your entries were done properly.

[mcj1902]

I exercised and sold employee stock options.   The net proceeds show as V on my W2 and the taxes were paid by the company on the W2.   How do I enter this?  Do I also enter as investment income?   When I do, the proceeds are counted twice.   Please help.   thanks 

[DaveF1006]

It depends. Were these Incentive Stock options, EESP, or RSU? These are all handled a little differently.

[mcj1902]

Stock Options 

[AmyC]

Yes. You  probably need to adjust the cost basis of the 1099-B stock sale with the amount included in your w2 box 1.

[mborch3665]

RSU

[MarilynG1]

What appears on your W-2 is not proceeds from the stock sale; it's the difference between what you paid for the stock (as an employee) and the FMV of the stock when it vested (your discount). There may be a notation of this amount on your W-2. 

Just enter your W-2 as shown; there is no other place to report this.

The 1099-B reports the proceeds from the actual stock sale.  However, since the broker doesn't know what you actually paid for the stock (as an employee) it usually shows a Cost Basis of $0.

You need to change the Cost Basis on your 1099-B entry to the FMV amount, so you don't overpay gains/loss on the stock sale.

Depending on which TurboTax you have, when you are entering your 1099-B there's a place to indicate that 'I need to adjust cost basis' or 'the cost basis is incorrect' so that you can then enter the correct Cost Basis. 

You should have info from your employer in some form that tells you what the FMV of the stock was when it was vested.

Hope this helps!

Click this link for more info on How to Enter 1099-B.

[romanm07]

I wave similar question hope someone can help:

'22 sold company stock option at gain lets say 10K, employer reported them on W2 

'22 sold various stock on market at loss, lets say -10K. reported on 1099

Turbotax does not combine these and wants me to deduct max 3k from my taxable income and carry over 7K for next year loss

Should stock option sale gain wash out loss from other stock sale ???