You may need to enter the Form 1099-B in TurboTax that is associated with employee stock sales and vesting and associated sale of restricted stock units (RSU's). The W-2 form will report the ordinary income portion of the transactions while the Form 1099-B will report the capital gains portion.
You will have to look at the description of what was sold to discern what type of stock was sold. If you are unsure, you will need to ask your employer.
For RSU's, you have ordinary income when they vest (when you take ownership of the stock). Since they are subject to social security and Medicare tax, shares are sold to pay those taxes. If this is all that happened during the year and you didn't sell any additional RSU's, then the sale reported on your Form 1099-B will be from stock just acquired, so there will be little if any capital gain. Consequently, when you report the 1099-B form, the cost basis may have to be adjusted to equal or approximate the sale amount. IF you sell RSU's later on, the cost basis reported on your Form 1099-B may have to be adjusted to include any ordinary income you reported when they vested. In this case, there wouldn't be anything reported on your W-2 for the shares sold after they were previously vested.
For non-qualifying stock options (NQSO's), the discount on them will be taxable when you acquire the stock. It will be reported on your W-2 form. Since they are not subject to Social security or Medicare tax, you don't have to sell any stock to pay those taxes, in which case you may not have a Form 1099-B to enter. So, everything may be reported on your W-2. When you sell them later on, you have already reported the discount as ordinary income when you acquired the stock, so you just need to know you accounted for that in the cost basis for the shares you sold.
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