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airtas
New Member

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?
1 Best answer

Accepted Solutions
RichardG
New Member

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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13 Replies
RichardG
New Member

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...


Carl
Level 15

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?

NDEE14728
Level 1

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

@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
Employee Tax Expert

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

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.

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qinhh
New Member

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

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

qinhh
New Member

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

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
Employee Tax Expert

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

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.

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mcj1902
Returning Member

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

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
Employee Tax Expert

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

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

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mcj1902
Returning Member

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

Stock Options 

AmyC
Employee Tax Expert

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

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

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mborch3665
New Member

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

RSU

MarilynG1
Employee Tax Expert

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

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.

 

 

 

 

 

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