You do not "adjust your income" and you are not going to be double taxed. I assume this relates to an employee stock option you exercised and cashed. Here's the deal: in reporting the stock sale shown on 1099B, your cost basis is the value of the option exercise reflected on your W2. Since your proceeds were probably slightly less than that due to fees or commissions this will result in a small capital loss.
Hi. I have a similar situation, but my 1099B, does show the lower cost basis (my exercise price)
So the exercise income was already represented in my W2, and when i enter my 1099B in turbotax, I am getting double taxed. Is the 1099B wrong? is there a way to solve this in the turbotax software?
ARE they producing a corrected 1099B or not? The 8949,should reflect what was reported on the 1099B. If they correct the 1099B then just back out the first transaction and enter the corrected one. If they do not produce the corrected one, then filing the 8949 with figures that differ from the 1099B just will produce a letter from the IRS.