Question

Shares were sold by my ins co. I rec'vd proceeds less backup withholding due to issue with W9. In reporting 1099-B how do I claim backup withholding to get it refunded?

Forum|Forum|7 years ago
June 3, 2019
3 replies
0 views

My insurance company was bought and shares were sold. I received a check for proceeds of the 2018 sale, but due to an error on Ins company's brokerage, they claimed they did not have my W9 on file so backup withholding was deducted from my proceed check and sent to the IRS. They state I need to simply report the 1099-B and the funds withheld in backup withholding will be refunded to me, but there is no place to list the Federal income tax withheld (box 4 or form 1099-B) on turbotax..Help? How do I report box 4 Fed Income tax withheld.

TurboTax Premier Windows

S

Scottdds32Author

I have entered the initial info but turbotax does not allow me to move forward to enter tax withheld. Help

ScruffyCurmudgeon

Employee

Form 1099-B Shares of a Mutual Insurance Company which Demutualizes by issuing shares and becomes a publicly-traded company.

----------------------------------------------------------------------------------------------------
CURRENT IRS POSITION FOR 2018 TY in 2019:
Cost Basis = Zero Acquisition Date: Date of Policy Purchase [therefore usually L/T]

Please see the attached documents which lead you through the history of the relevant IRS claims as to Cost Basis and Date of acquisition of such shares, and the relevant and definitive case law which established over time and many court rulings what should be reported as Cost Basis.

2019 IRS Topic #430 - Determination on Receipt of Stock in Demutualization
https://www.irs.gov/taxtopics/tc430

CURRENT IRS POSITION FOR 2018 TY in 2019:
Cost Basis = Zero Acquisition Date: Date of Policy Purchase [therefore usually L/T]

If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67 NOT INTUIT EMPLOYEE USAR 64-67 AIS/ASA MOS 9301 - O3 - Just donating my time**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.

M

MinhT1

When entering your form 1099-B, after entering boxes 1a to 1e, click on I'll enter additional info on my own (see screenshot 1). On the next page, you can enter tax withheld in box 4 (see screenshot 2).

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

S

Scottdds32Author

I have entered per screenshot 1, but screenshot 2 does not come up at all; I have no date of acquisition or cost basis; those boxes remain red highlighted but I cannot get to page with withholding.