Wow. Fast reply, thank you!
Nothing in my documentation says it is non-qualified. This is ISO that is > 2 years from grant and > 1 year from exercise, so it shouldn't be disqualifying.
If I adjust the cost basis as you say (my 1099-B has no cost basis listed, so I entered it manually from when I exercised it), then I am certain I will only have the W-2 earned income tax, however this was an investment I made so it SHOULD be capital gains no? Capital gains (not W-2 income) was also how the company told their employees the tax scenario would be.
