Every tax season, I see the same issue arise for P&G employees who exercised stock options or sold shares through
E*TRADE.
If this applies to you, there is
one document that is often missed but can make a big difference when filing your taxes.
The Document Many People Forget
In addition to your
1099-B, E*TRADE typically provides a second report called:
- Supplemental Stock Plan Information,
or sometimes
- Stock Plan Transaction Supplement
This report is extremely important when you have:
- Stock option exercises
- RSU vesting and sales
- Equity compensation transactions
Why This Matters for Your Taxes
When stock options are exercised, or RSUs vest, the
income from those transactions is typically already included on your W-2 and taxed as ordinary income.
However, the
1099-B issued by E*TRADE often does not include that income in the cost basis of the shares.
Without the supplemental report, it can appear as though you have
much larger capital gains than you actually do.
That can lead to:
- Incorrect tax reporting
- Confusion for your CPA
- Potentially
paying more tax than necessary
The
Supplemental Stock Plan Information report shows the
adjusted cost basis, including the
income already reported on your W-2.
Your CPA or tax software typically uses this report to properly reconcile the transaction on
Form 8949.
How to Download the Supplemental Report in E*TRADE
- Log in to your
E*TRADE account
- Navigate to your
Stock Plan Account
- Select
Documents
- Click
Tax Documents
- Look for a document titled:
- Supplemental Stock Plan Information —OR—
- Stock Plan Transaction Supplement
Download this report
in addition to your 1099-B and provide it to your CPA or upload it to your tax software.
A Quick Reminder
If you had equity transactions last year, make sure you download:
- 1099-B
- Supplemental Stock Plan Information report
This small step can help ensure your
equity compensation is reported correctly and avoid unnecessary taxes.
