josa27
Level 1
06-30-2020
01:56 PM
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My client who is 57 years old withdrew from her Employee Stock Ownership Plan (ESOP) due to financial hardship. However, during tax time, she was given two 1099s - 1099-R and 1099-B for the same amount of $34,972.38. Should I input both amounts in her tax return? Wouldn't she be taxed twice for the single withdrawal?
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qbteachmt
Level 15
06-30-2020
02:11 PM
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You can only sell something you possess with the right to sell it; or the distributions could have meant taking possession by rolling/transferring into a different plan. The 1099-R is the distribution document and the 1099-B is the sale. The R establishes basis and any taxable amount because of the distribution, and the B gives gain or loss.
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