Stock option reported on w2
On my W-2, my employer reported income from the sale of stock options, non-qualified stock, and restricted stock units. Separately, I received s and entered information for the these sales into TurboTax. Now my income looks higher that it really is and I am getting taxed on these sales twice. How do I fix this while still following instructions? The problem is that you are using the WRONG BASIS to report the sale.
That's why you are getting a "double income" effect. When you sell stock acquired via an employer stock incentive program your basis for the sale is the sum of: The basis reported omits the "compensation" element of the sale and therefore the "compensation" gets reported twice: Clearly the "fix" here is to add back the compensation element to the basis of the stock being sold.
Of course if the sale is not for ALL of the stock received under an employer stock incentive plan award, you then you need to convert the compensation element to a "per-share" figure which you use in reporting the sale. If the B is reporting the basis to the IRS and is not using the correct basis, maybe only the amount you paid for the stock , then enter the B as it reads but then click on the "Add More Details" box or maybe "Edit Details" , and the "Start" button, or maybe "Edit.
On the next page select the first option which is " I need to add or fix info about this sale that's on my Form B. That's the interview you want and that's where you can fix things.
Tell TurboTax that the B is reporting the wrong basis and then enter the "missing" compensation to get to the correct basis. TurboTax will report the sale on Form "as reported by the broker" but will put an adjustment figure into column g of the Form, a code "B" into column f of the Form, and the correct amount of gain or loss which includes the adjustment. Please confirm on my steps on the fix. The compensation proceeds reported on the W2 should be added to the Cost Basis listed on the B.
This adjusted total which now equals the Proceeds on B should be recorded on form column f code "B", column g adjusted total. You've done something wrong. Go back and do EXACTLY what I've specified above. Ii've added my w2 NSO income to the cost basis.
How to avoid paying double tax on employee stock options - SFGate
I can't tell if you are saying that you are getting the correct answer on your income tax return, or not; it's just not clear. BUT, if you are seeing a page titled "Your Employer Stock Plan Results" then it's clear that at some point you selected the SECOND option on the page that you get to when you click "Add More Details", that is, the option that reads "This sale may require special handling" because that's the ONLY WAY that page will ever come up.
If you've go the correct answer on your income tax return, great. You certainly can go the second route and get the correct answer. If you're not getting the correct answer then DELETE THE TRADE, don't attempt to just modify it, and try again following the above instructions. I did try to delete the enter and re-add it. I'll try again, or restart the whole thing.
How to Report Employee Stock Options Sold on a W2 | eHow
I will take your advice and see if I can get it restarted from a clean slate. Hi Tom, Thanks for your advice on this subject. I followed your instructions; however, it's only letting me enter 'C', 'W', or 'D' in section f. I put in 'B' anyways, but TurboTax flags me at the end.
Any additional tips for resolving this?
I appreciate your help! The tip is delete the sale and then re-enter it, following the instructions this time. You didn't follow the instructions because you put an amount and a code in Boxes 1g and 1f OF THE B. Thank you so much, TomYoung! I appreciate your help. People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge.
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Non-Qualified Stock Options - TurboTax Tax Tips & Videos
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Submit a question Check notifications Sign in to TurboTax AnswerXchange or. Back to search results. Employer stock sales on both W-2 and are double counted and taxed On my W-2, my employer reported income from the sale of stock options, non-qualified stock, and restricted stock units.
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