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I spent 2 hrs on the phone w/ someone and I am exactly where I started. There is a disconnect in Turbo Tax where it is not filling out and recognizing form 8949.

Forum|Forum|7 years ago
June 1, 2019
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Stocks sold are being shown as income on the W-2 and subsequent 1099-B because Turbo Tax doesn't do the form 8949. So, I'm getting double taxed!

TurboTax Premier Online

Best answer by TomYoung

No, TurboTax most certainly does prepare a Form 8949. It's done "behind the scenes" so to speak, taking information that you input using the "Stocks, Mutual Funds, Bonds, Other" interview and placing this information on Form 8949. Summary numbers off your Form(s) 8949 then flow up to Schedule D and summary numbers off Schedule D then flow up to line 13 of your Form 1040.

You problem is that you are using the WRONG basis to report the sale. Use the CORRECT basis and your "double taxation" issue goes away.

Starting in 2014 brokers were only required to report on Form 1099-B your "out of pocket" cost for receiving the stock, (which might be $0 for an RSU plan), so if you simply enter the Form 1099-B exactly as it reads you would be double taxed: you'd report the compensation on your W-2 and then also overstate your gain on Form 8949.

After entering the 1099-B exactly as it reads click the "I'll enter additional info on my own" and put the correct amount of basis in the "Corrected cost basis" box.

Tom Young

T

TomYoungAnswer

Employee

No, TurboTax most certainly does prepare a Form 8949. It's done "behind the scenes" so to speak, taking information that you input using the "Stocks, Mutual Funds, Bonds, Other" interview and placing this information on Form 8949. Summary numbers off your Form(s) 8949 then flow up to Schedule D and summary numbers off Schedule D then flow up to line 13 of your Form 1040.

You problem is that you are using the WRONG basis to report the sale. Use the CORRECT basis and your "double taxation" issue goes away.

Starting in 2014 brokers were only required to report on Form 1099-B your "out of pocket" cost for receiving the stock, (which might be $0 for an RSU plan), so if you simply enter the Form 1099-B exactly as it reads you would be double taxed: you'd report the compensation on your W-2 and then also overstate your gain on Form 8949.

After entering the 1099-B exactly as it reads click the "I'll enter additional info on my own" and put the correct amount of basis in the "Corrected cost basis" box.

Tom Young

F

fleurypj

So - "After entering the 1099-B exactly as it reads click the "I'll enter additional info on my own" and put the correct amount of basis in the "Corrected cost basis" box."

What is the "correct amount of basis"? This means nothing to me and I have this same problem.

KathrynG3

Correct amount of basis means adjusting the wrong cost reported on your broker statement to the amount you paid for this investment. In the case of Restricted Stock Units that were reported in Form W-2, the stock amount included in Box 1 has been taxed. That amount should be entered as your basis.

For example,

Included in Box 1 of Form W-2 was 8,000 for the Restricted Stock Units when they vested, and were therefore taxed.
These stocks were then sold.
The broker reported a stock sale with proceeds of $10,000 and cost basis of $0.
When filing the tax return and reporting the stock sale, the cost should be adjusted to $8,000.
- If the stocks were sold on the same day they vest, there is usually a small capital loss due to the sales fee.

@fleurypj

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_dk

Hi, I used the off-line H&B version and imported my data from the vendors. All 1099s and 8949's were filled out and processed correctly. I don't have the data on the on-line version but check that it covers all investments. Seems to me I had a problem with Premier and K-1's a couple of years ago.

best, _dk

KathrynG3

Yes, TurboTax handles investment sales and prepares all necessary forms. In the event of employee stock options or other transactions requiring adjustment to cost basis, the program allows you to make those adjustments.

For more information, see:

Where do I enter investment sales?

What is a wash sale?

Where do I enter a K-1 that I received?

@_dk