Stock sell already reported in w2

[justdoit]

Hi, I have stock sell already reported in w2 as Stock Gain, Should i report the form 1099-B and do i have to recalculate the cost basis to reflect that w2, I assume the stock gain was already taxed/taxable through the w2 so i don't want to declare that gain twice

[Fern · Accepted solution]

When entering the sale of the shares, indicate that the sale involves an employee stock purchase plan.  See screenshot below. You will then be prompted to enter information about the sale and the amount that is reported on your W-2.

To enter the sale:
• Select Federal Taxes
• Select Wages and Income
• Select Show More at Investment Income
• Select Start at Stocks, Mutual Funds, Bonds and Other

Employee stock purchase plan shares are purchased at a discount. The discount the employee receives on the stock purchase is considered compensation and is reported as ordinary income. Your basis in the stock purchase will be the amount paid for the stock plus the compensation income reported.

The sale of these shares are reported on a Form 1099-B.  The capital gain or loss is the difference between what the stock sold for and your basis.

See the article below for more information.

https://turbotax.intuit.com/tax-tools/tax-tips/Investments-and-Taxes/Employee-Stock-Purchase-Plans/I...