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Scottdds32
New Member

Shares were sold by my ins co. I rec'vd proceeds less backup withholding due to issue with W9. In reporting 1099-B how do I claim backup withholding to get it refunded?

My insurance company was bought and shares were sold. I received a check for proceeds of the 2018 sale, but due to an error on Ins company's brokerage, they claimed they did not have my W9 on file so backup withholding was deducted from my proceed check and sent to the IRS. They state I need to simply report the 1099-B and the funds withheld in backup withholding will be refunded to me, but there is no place to list the Federal income tax withheld (box 4 or form 1099-B) on turbotax..Help? How do I report box 4 Fed Income tax withheld.

5 Replies
Scottdds32
New Member

Shares were sold by my ins co. I rec'vd proceeds less backup withholding due to issue with W9. In reporting 1099-B how do I claim backup withholding to get it refunded?

I have entered the initial info but turbotax does not allow me to move forward to enter tax withheld. Help
ScruffyCurmudgeon
Level 9

Shares were sold by my ins co. I rec'vd proceeds less backup withholding due to issue with W9. In reporting 1099-B how do I claim backup withholding to get it refunded?

Form 1099-B Shares of a Mutual Insurance Company which Demutualizes by issuing shares and becomes a publicly-traded company.

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CURRENT IRS POSITION FOR 2018 TY in 2019:
Cost Basis = Zero  Acquisition Date:  Date of Policy Purchase [therefore usually L/T]

Please see the attached documents which lead you through the history of the relevant IRS claims as to Cost Basis and Date of acquisition of such shares, and the relevant and definitive case law which established over time and many court rulings what should be reported as Cost Basis.

CURRENT IRS POSITION FOR 2018 TY in 2019:
Cost Basis = Zero  Acquisition Date:  Date of Policy Purchase [therefore usually L/T]

Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
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-------------------------------------No Not an Intuit Employee - Just donating my time
MinhT
Expert Alumni

Shares were sold by my ins co. I rec'vd proceeds less backup withholding due to issue with W9. In reporting 1099-B how do I claim backup withholding to get it refunded?

When entering your form 1099-B, after entering boxes 1a to 1e, click on I'll enter additional info on my own (see screenshot 1). On the next page, you can enter tax withheld in box 4 (see screenshot 2).

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Scottdds32
New Member

Shares were sold by my ins co. I rec'vd proceeds less backup withholding due to issue with W9. In reporting 1099-B how do I claim backup withholding to get it refunded?

I have entered per screenshot 1, but screenshot 2 does not come up at all; I have no date of acquisition or cost basis; those boxes remain red highlighted but I cannot get to page with withholding.
ScruffyCurmudgeon
Level 9

Shares were sold by my ins co. I rec'vd proceeds less backup withholding due to issue with W9. In reporting 1099-B how do I claim backup withholding to get it refunded?

See History of Demutualized Shares of Stock of a previously organized mutual insurance company.
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time
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