I had a batch of ISOs that were exercised in 2024 and sold in 2024, and these were included by my employer in Box 14 of my W-2. These were NOT included on a 1099-B from my broker. When I add all these sales into TurboTax and include details around FMV, exercise price, etc.., TurboTax correctly shows me a screen that says "Let's review your employee stock plan results", and shows a value for the W-2 disposition that matches what is listed in Box 14 of my W-2 for "ISOs".
However, here is where I'm running into an issue. I exercised another batch of ISOs in December 2023, which I then sold in October 2024. This sale was reported on a 1099-B from my broker. The sale occurred two years after the grant date, BUT less than one year after the exercise date, so it is a disqualifying disposition. When I go through the TurboTax screens to figure out my cost basis, it asks me questions about the ISO sale. I select "an employer that has an existing W-2 on this return" and enter the number of shares. I enter the purchase information from the ISOs from 2023. TT then adjusts my cost basis. However, what happens is that this batch of ISOs is added to that same W-2 disposition amount, and that amount no longer matches what is on my W-2.
So what I am trying to figure out is -- is TT doing this wrong, or did my employer accidentally not include the batch of ISOs exercised in 2023/sold in 2024 on my W-2?
