1099-B vs. stock plan transactions supplement

Forum|Forum|3 years ago
April 17, 2023
1 reply
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Hello,

For employee stock transactions (RSU and ESPP), stock plan transactions supplement reports adjustment amount (ordinary income), adjusted cost basis, and adjusted gain (loss), resulting in reported adjusted (loss). 1099-B does not report adjusted values, resulting in reported realized gain. W-2 in Box 14 has ESPP, ISODD and RSU amounts. How to reconcile and properly report?

Thank you.

HelenC12

Since the gain on that stock sale was included as income on your W-2, to avoid double taxation:

You will need to change the stock basis on the date of the sale, to the price on the date of sale.
The result is zero gain or a minor loss due to brokers commission/fees.
The IRS will expect to see that information on your tax return.

For additional information, see the TurboTax article: Non-Qualified Stock Options.

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