How do I include an 83(b) election if I received no salary/W2?

Forum|Forum|7 years ago
June 6, 2019
5 replies
2 views

Last year I paid fair market value for restricted stock and filed an 83(b) election within 30 days. No money was earned and I did not receive a W2. Do I need to include anything in my return to make note of the 83(b) election?

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Anonymous

Did you receive the w2 for this ?

ajm6587Author

Level 2

Great! No, I did not receive a W2 from the company.

VictoriaD75

Level 12

83b elections should automatically be reported on your W2. You will not receive a separate form. The 83b must be filed within 30 days of the award, but the IRS no longer requires that a copy be filed with your tax return.

The award should be reported entirely in box 1 of your W2 in the tax year in which it was granted. Once you have received your W2, be sure to check this information. You may need to contact your employer for a corrected W2 if it was not reported correctly. Any associated withholding would be included on box 2 of your W2. If they did not withhold for the award, this will likely increase any tax due on your return. Any dividends earned should be reported separately on a 1099-DIV. Because these transactions are reported on a W2, tax reporting becomes simple.

After the stock vests, any sales transactions will be reported in the year that they occur on a 1099-B. Those transactions most likely did not occur in the year of the award.

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Nick_M28

Level 2

What if you are the employer? How do I get generate a W2 for myself and a co-founder in QB that reflects this other comp.? @VictoriaD75

Anonymous

If you did not receive the W2 for this, you do not have to report this in your tax return.

techwesr

Level 2

Hello, I am in this same situation. So if I don't have to report this on my taxes then does that mean I do not need to pay taxes on the money paid for the shares? I thought I would need to pay income tax on the fair market value of the stock

erica3

Level 2

How did you fill out your 83B election?

jv1975intit

Level 2

I am in this situation as well. I earned salary in 2019 from a startup and received a stock grant (and I filed an 83b). I received a w2 but it only included my cash compensation and not the value of the stock.

I stopped working for the company last year and it is now essentially out of business (it exists in name only and my stock is worthless). I’m attempting to have a corrected w2 issued but I’m not optimistic that this will happen.

Assuming I do not get a corrected w2, what do I do? I assume I still do have to report the income (I have seen comments in this forum to the contrary but with nothing to back it up). *How* exactly (i.e. in TurboTax) do I report this income?