Hi the answer to this is not clear. I have the same question if you could please clarify.
I had ISO and PISO that I exercised and sold shortly after, most in the same day to capture the current market value and not wait a year.
The gross proceeds and cost basis were recorded to me in a 1099 B under 'short term covered securities'. This accurately reflects to me the taxable amount to IRS. For example 10,000 gross proceeds, and 3,000 cost or other basis
My employer also included the gross proceeds in box 1 on my W2 (the $10000 above). Gross proceeds is ~ the total exercise - the cost of options.
No taxes are witheld from my employer, I paid pre-paid taxes to the IRS.
If i report the ISO amount in the W2 box 1 and also put the inputs from the 1099-B for the same ISO won't that be double counting. Like the other user asked should I just back out the ISO amount from Box 14 from Box 1, and then use my 1099-B Inputs?
Thank you
