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How do I adjust cost basis for individual ESPP sales when they're in my 1099 composite?

James4762

I uploaded a 1099 composite from Fidelity that contains a mix of transactions, some of which are ESPP sales and others that are unrelated. I need to adjust the cost basis of the ESPP sales because the 10% ESPP discount was already added to my w2 taxable income. However I'm not able to find a way to edit the cost basis of the stock sales one-by-one, I only see a way to edit the total cost basis for the entire 1099 composite. Will I need to manually calculate the adjustment for this entire 1099 or am I missing something? In another tax product I've used in the past we could edit these sales individually.

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Taylor

Hello James4762,

After uploading the composite, the next screen asks you to review each of the 1099 forms entered from the upload. You can click to review each form and then make edits to the entries.

Be sure to indicate in the 1099-B screens, it is an ESPP and then after the main stock sales entry screen, the software will ask if you have adjustments, select Yes. After selecting "the basis shown in Box 1e is incorrect," a box will be provided to adjust the basis. If the adjustments are specific to one stock you may need to enter it individually or as a summary if you have several.

See this article for details:

https://community.freetaxusa.com/kb/articles/151-what-is-an-employee-stock-purchase-plan-espp-and-how-is-the-income-reported-and-taxed?