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March 17, 2025
Question

If i sold company stock does it increase my gross income? Im wondering if im paying tax on it twice if its in my W-2 and also in the investment section.

  • March 17, 2025
  • 1 reply
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    1 reply

    March 17, 2025

    You may be paying tax on it twice if your Form 1099-B reports an incorrect cost basis, which is typical when you are dealing with the sale of company stock. 

     

    The amount on your W-2 form referencing company stock in box 12 represents the discount on the shares you acquired though your employee stock plan. If you divide that amount by the number of shares you acquired, you will have a discount income per share amount. When you enter your Form 1099-B, you may need to multiply the discount income per share amount by the number of shares sold to arrive at a cost adjustment amount you may need to add to the cost basis reported on your Form 1099-B.

     

    When you enter your Form 1099-B, you will choose the option that says you sold employee stock. When you enter the sale information, indicate that you sold the appropriate type of company stock and check the box for line 1(e) that says the cost basis is wrong or missing:

     

     

    You will then see an option to enter the correct cost basis or let TurboTax assist you in determining what the correct cost basis should be.

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