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Level 1

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

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?
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Level 1

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

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...


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2 Replies
Level 1

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

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...


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Level 20

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

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?