RobertB4444
Expert Alumni

Get your taxes done using TurboTax

@zaka634  When you 'early exercise' your stock options it just means you're fully vested earlier.  Your employer is giving a shorter vesting process as an additional incentive.  

 

There are a number of online tools that will give you the historical FMV of a stock using the ticker symbol and the date.  Just document which tool you're using and what the historical value is so you can reproduce it if necessary.  

 

For 2021 (provided you don't sell these stocks) the only thing that needs to be entered is the difference between the FMV on the date that you exercise it and the amount you were able to exercise the options for.  This is called the 'bargain element' and it reported only for AMT purposes.

 

To report this for 2021 (again, assuming you did not sell these shares in the same year), type 'Form 6251' in the search box and click the 'jump to' link.  Follow the prompts in order to get to the necessary section.

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