Thank you for the reply. I fall into category 2. While the link in your reply was broken, I did find the following turbotax article that lead me to the detailed instructions I needed.
Non-Qualified Stock Options
Written by a TurboTax Expert • Reviewed by a TurboTax CPA
Updated for Tax Year 2022 • December 1, 2022 08:25 AM
OVERVIEW
Exercising options to buy company stock at below-market price triggers a tax bill. How much tax you pay when you sell the stock depends on when you sell it.
Thanks for your help @DawnC. For me at least, it is case closed on this issue.
