You are correct about code V, in Box 12 of your W2.
- V — Income from exercise of non-statutory stock options (included in Boxes 1, 3 (up to Social Security wage base), and 5). See IRS Publication 525, Taxable and Nontaxable Income, for reporting requirements.
When you enter the W2 form all withholdings for state and federal are 100% accounted for. For the Form 1099-B there is nothing to enter as far as federal or state withholding. However, there is a cost basis for the stock which will reduce the gain and therefore the tax.
The income that was included in the W2 is part of (possibly totally) the cost basis of the stock. Review the documents to see what the fair market value )FMV) was on the date of exercise (and amount actually paid on that date if applicable) along with the difference of FMV. OR the vested amount included in the W2, box 12.
- It's either an ISO where the option was exercised to purchase the stock and an amount was paid that was the option price and the difference between option and exercise was added to wages (both cost and wage income are the cost basis in this scenario). Divide this by the shares received and this is the cost per share.
- The full vested amount is included in wages and this is the cost divided by the total shares to arrive at the cost per share.
@ajdowns
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
