It could be in your Box 1 wages with no other notation on your W-2 or paystub. It is required of the employer to include in your W-2 the difference between option price and fair market value on the date of exercise. It's important to check with your employer first if you are unsure.
The cost basis is the amount you paid (discounted price) and the amount included in your income (difference between option price and FMV on the date of the exercise).
Please use the steps below based on the TurboTax product you are using to begin or review your entry.
- Entry steps in TurboTax Online:
- Tax Home > Wages & Income > Less Common Investments & Savings > ISO Exercise & Hold: Edit/Add
- Entry steps in TurboTax Download:
- Search (upper right) > ISO > Select ISO exercise & hold
Information needed to complete the return:
- Is this a statutory or non-statutory exercise? (Employer can provide)
- If the employee is no long employed at the company at the time of exercise it is non-statutory.
- Form 3921 provided by the employer or a substitute document with the necessary information. See the Boxes numbers below.
- Date option granted
- Date option exercised
- Exercise price per share
- FMV per share on exercise date
- Number of shares transferred
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