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1099 Forms and W2

Forum|Forum|4 years ago
January 29, 2022
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During the year I sold some stock and stock options that I received as incentive compensation from my employer. When I made the sales, my employer deducted the federal taxes due on the gain. My employer included this income and the federal tax paid on my W2. I also received a 1099B form. In Turbo tax if I enter this in the W2 section and the 1099 section as income, it appears to double up my income. It looks like I should only enter this in the W2 section and not the 1099 section. Is that correct? Are there any implications if I do not add a 1099 section in my return, if all the income and taxes paid are included in the W2 section?

Best answer by HelenC12

You'll need to enter both your W-2 and your 1099-B form. 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.

H

HelenC12Answer

You'll need to enter both your W-2 and your 1099-B form. 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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