Question

If I sold some employee stock shares through an online brokerage and taxes were taken out at the time of the sale, do I report this on Form 8949 or Form 1099-B?

Answer

The brokerage should issue you a Form 1099-B showing the sale of the stock and the taxes withheld.

Report this information on Form 8949. This amount will then transfer to your Schedule D for the sale and Form 1040 for the tax withheld on the sale.

What is Form 8949 Used For?

reviewing & selling stocksIf you exchange or sell capital assets, report them on your federal tax return using Form 8949: Sales and Other Dispositions of Capital Assets. You will report the totals of Form 8949 on Schedule D of Form 1040.

Here is more information on how Tax Form 8949 is used from the IRS:

If you receive Forms 1099-B or 1099-S (or substitute statements), always report the proceeds (sales price) shown on the form (or statement) in column (d) of Form 8949. If Form 1099-B (or substitute statement) shows that the cost or other basis was reported to the IRS, always report the basis shown on that form (or statement) in column (e). If any correction or adjustment to these amounts is needed, make it in column (g). See How To Complete Form 8949, Columns (f) and (g), later, for details about these adjustments.

How To Fill Out Tax Form 8949

Here is a summary of how to fill out tax form 8949.

If all Forms 1099-B (or all substitute statements) you received show basis was reported to the IRS and no correction or adjustment is needed, you may not need to file Form 8949. See Exception 1 under the instructions for line 1.

You’ll report the following information about short-term transactions in Part I:

  • Check box (A), (B) or (C) to indicate if basis was reported on Form 1099-B or if you did not receive Form 1099-B
  • On line 1, enter:
    • Description of property (Example: 100 sh. XYZ Co.)
    • Date acquired (month, date, and year)
    • Date sold or disposed of (month, date, and year)
    • Proceeds (sales price)
    • Cost or other basis
    • Adjustments (if any) to gain or loss and the adjustment code
    • Gain or loss
  • On line 2, total the amounts for proceeds, cost or other basis, adjustments (if any) and gain or loss.

The same information should be entered in Part II for any long-term transactions.

More Help With IRS Form 8949

If you’re looking for more help with tax reporting using Form 8949 and nondeductible contributions, get the help of H&R Block. Drop off, file online, or work with a tax pro remotely—it’s up to you!

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