If you exercised nonqualified stock options (NQSOs) last year, the income you recognized at exercise is reported on your W-2. It appears on the W-2 with other income in: Box 1: Wages, tips, and other compensation. Box 16: State wages, tips, etc.
How are non-qualified stock options reported on W-2?
Employers must report the income from a 2020 exercise of Non-qualified Stock Options in Box 12 of the 2020 Form W-2 using the code “V.” The compensation element is already included in Boxes 1, 3 (if applicable) and 5, but is also reported separately in Box 12 to clearly indicate the amount of compensation arising from …
Where do stock options go on a W-2?
Stock Options. If you exercised nonqualified stock options (NQSOs) last year, the income you recognized at exercise is reported on your W-2. It appears on the W-2 with other income in:
What happens to restricted stock on a W-2?
If you made a Section 83 (b) election to be taxed on the value of restricted stock at grant, your W-2 for the year of grant, not vesting, shows the income and withholding. If you exercised nonqualified stock options (NQSOs) last year, the income you recognized at exercise is reported on your W-2.
Do you have to report stock compensation on Form W-2?
Along with snowflakes, Form W-2 is in the air—or rather, hopefully either in your safe possession or on its way to you. Employees who had income from stock compensation or an employee stock purchase plan in 2014 must understand where that income is reported on Form W-2 so that they can complete their tax returns properly.
What kind of income is reported on a W-2?
Form W-2 doesn’t just report your salary to you and the IRS. It also includes income from any other compensation sources you may have, such as stock options, restricted stock, restricted stock units, employee stock purchase plans, and cash bonuses.
