@Tj2008 , I am missing something here -- are you saying that
(a) if the FMV of the stock at the time of exercising the option was say $10 and your option to buy was guaranteed at $5, your employer included $5 ( the diff between option and FMV) in your W-2 as income and withheld taxes on that ( Fed, State + Fica )
Or
(b) with the same FMV and Option prices, the employer reported the FMV price and included that in W-2 and withheld taxes accordingly
Or
(c) Employer reported none of the above
Please help me understand the situation -- my source of confusion is started by " deducted taxes based on FMV and exercise price". Also did they already recognize the option price in an earlier year W-2.
I will circle back once I hear from you
