Question

How do I know if I sold ESPP, RS, RSU or NQSO on form 1099-B?

Forum|Forum|4 years ago
March 16, 2022
2 replies
0 views

TurboTax wants to know if sales on 1099-B include any employee stock (this includes ESPP, RSU, RS, NQSO, and ISO according to them).

TurboTax Self Employed Online

A

AamilD

It depends. Did you get 1099-B from a brokerage company because you traded stocks, options, or other securities or did you get 1099-B because you own/have options to purchase stocks of the company you are employed with?

All the categories which you mentioned are related to stocks/stock options which your employer has provided for you. For example ESPP is employee stock purchase plan where you buy your company stocks at a discounted price. So if you did that you would know that the 1099-B which you received is related to ESPP.

However, if you traded stocks/options of different securities via your brokerage and those are not your company stocks, then you will mark that question as a NO since its not related to your company.

L

lostmonster

I found this thread via google, trying to answer the above question.

However, I know the difference between ESPP and RSU.

My problem is that the 1099 form doesnt (clearly) specify the kind of stock for each listed sale. So when I am doing my taxes in turbo tax, and it asks, "what kind of stock is this sale?," I cannot answer easily.

Not only does the form not (clearly) specify, but also e-trade (in my case) itself doesn't (clearly) specify.

Is there a demarcation, or some kind of organization method, on form 1099 that distinguishes ESPP sales from RSU sales?

R

RobertB4444

Hi ThomasM125. I have a follow-up question on how to enter the sale of these owned types of employer stock into Turbotax Premier. The 1099-B I received reports a single entry (non-covered of course, with nothing beyond the date of sale, the total number of shares sold, and the net total proceeds) for a stock sale that included several lots of ESPP, a few ISOs, and an RSU. Here are the issues:

- I did not receive any additional supporting documentation delineating the splits and there is no possibility to request them as these assets have bounced through several financial institutions.

- Turbotax immediately inquires about 1099-B entries which are at the total value but wants to associate that with only one of the categories (ESPP, ISO, or RSU). Those two entries are not compatible. So, it is obvious that I cannot enter at the combined total level.

- Since Turbotax insists on having entries for 1099-B provided fields, I cannot create individual sales for each of the (24) original transactions and match the entry on the 1099-B as it does not allow me to "indent" and then sum all associated with that stock. So, the entries for the number of shares and proceeds would not match unless there is a way to total them or leave that exercise (fun?) to the IRS.

What do you suggest?

As an aside, could I combine the (18) ESPP transactions (which occurred quarterly BTW) into one with an entry of "various" for the date?

Any help you (or anyone) could provide would be greatly appreciated. Thanks!

-

I would indeed combine the entries and then send the 1099-B to the IRS and let them sort the mess out. If you have made your good faith effort to break the transaction up as much as you are able to do and pay the taxes owed on what you have come up with then you have done what you can and if they have an argument let them make it.

You can combine the 18 ESPP dates with a 'various' purchase date. That's what I would do.

@amvivaldi

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

T

ThyleUllar

If, like me, you sold both ESPP and RSU shares last year, then the only semi-helpful sentence in all the answers above was: “you’ll need to do some digging.”

For E*Trade, I had to go to my account, then orders, select last year, and filter by ‘Executed.’ Then, I was able to see which ones were RSU and which were ESPP.

D

docross

Agreed, the above explanations were very long winded ways of saying "you'll have to dig through your sales individually on your broker's website, good luck".

T

ThomasM125

Employee stock would include stock acquired through an employee stock purchase plans (ESPP), stock awarded to an employee as restricted stock units (RSU's), acquired at a discount through an employee incentive (ISO's) or non-qualified stock options (NQSO). If you acquired stock in the company you work for at a discount or for free, it would be employee stock, so if any such stock is listed on your Form 1099-B, you would indicate that in TurboTax.

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