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June 27, 2019
Question

How do I report ISO income on Schedule D, when it was reported to me on my W2 as income and reported in box 14 as ISO D?

  • June 27, 2019
  • 2 replies
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2 replies

Critter
Employee
June 27, 2019

The ISO should be reported in 2 places ... on the W-2 showing what you paid for the stock and on the 1099-B from the broker showing the sale.   You MUST report BOTH parts or you will get an IRS letter.  If the stock sale is entered correctly you should have a small loss on the Sch D in the amount of the brokers fee if this was a cashless transaction.  If the broker did not report the cost basis correctly then it is up to you to do so. 

Lisa995
Employee
June 28, 2019

Enter the W2 as it is.  That wont go to Sch D.  You need to enter the 1099B from the brokerage to compute any gain/loss and that will appear on Sch D and the 8949.

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