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pyoush
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Turbotax Online - ISO Cashless Exercise

Hi,

 Turbotax online is driving me crazy. Please help!

  1. ISO Exercise - I exercised 10,000 ISO in 2023 through a "cashless exercise"
  2. Cashless - The cashless exercise included sale of 1033 (of the 10K ISOs) in 3 separate sale transactions. My 1099-B is reporting these has three separate transactions (as expected), but the "cost basis" for all 3 is incorrect (low).
  3. Box 1 W2 - The "total gain" from the exercise-and-sale of these 1033 is already included on my Box1 W2 as compensation income. Box 14 (DISQD) has this compensation income as well
  4. I then went through the TT interview for each of these 3 transactions to "adjust" the "cost basis" by entering information from Form 3921 into TT. After I enter this information, the adjusted cost basis and Gain/Loss loss correct on the Wages & Income > Investment & Savings screen
  5. However, when I check the actual Form 1040 (Tools > Print Center), I notice that TT is "adding" the cost basis adjustment amount back on Form 1040 (Line 1h). I can see where this is coming from - I see this amount on the "Form 1040 Line > Wages, Salaries & Tips Worksheet" on Line 5 (Ordinary income from employer stock transactions not reported on Form W-2)

Why is TT doing that and how I can fix/correct this? I have tried everything I possibly can with no luck.

 

Any help would be appreciated!

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