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February 17, 2021
Question

I got a 1099 B for profit sharing we sold. However these profits are also in our w2. when I import it causing us to get double taxed on this money. How do I fix this

  • February 17, 2021
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1 reply

February 17, 2021

Because you received this from your employer, I suggest you delete the import, and enter the transaction manually.  The broker does not know that your W-2 included the value of the stock when you received it, so you have to "adjust" the cost basis of the stock sold to keep from paying more tax than you should.  You should be able to enter the transaction and adjust the cost basis without answering yes to "is this employer stock?".   Enter the transaction exactly as it is reported on the Form 1099-B.  As go through the entry screens, you will see "Select any less common adjustments that apply".  Check the box for "The cost basis on my statement is incorrect".  This will trigger the program to add an input box where you can enter the Corrected cost basis.  Enter the amount that was included in your W-2 when you received the stock. This is your correct basis.  If you had reinvested dividends you would need to adjust for that as well.

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