@mmvasu ==
As @SteamTrain stated, the compensation element of the exercise of your NQSO's would be reported on your W-2 if you were an employee of the company. If you were granted the options as a non-employee, you should have received a 1099-NEC.
When you exercise an option and do not sell, the difference between the FMV at exercise and the grant price is taxed as ordinary income and is subject to federal, state, and local income tax in addition to payroll taxes.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
