Yes, you may have more to do. You will most likely get a 1099-B for that stock sale from whatever financial institution handled the sale. You will enter that exercise as a sale of stock.
Since the gain on that stock sale was included as income on your W-2, to avoid double taxation:
- You will need to change the stock basis on the date of the sale, to the price on the date of sale.
- The result is zero gain or a minor loss due to brokers commission/fees.
- The IRS will expect to see that information on your tax return.
For additional information, click on https://turbotax.intuit.com/tax-tools/tax-tips/Investments-and-Taxes/Non-Qualified-Stock-Options/INF...
Exercising ISO's may cause you to have to pay Alternative Minimum Tax (AMT). When we calculate your "regular" taxes for the year, we also calculate your AMT taxes behind the scenes. We do this on every personal (individual) tax return.
If your AMT tax calculation exceeds your "regular" tax calculation, you become one of the several million taxpayers who have to pay the AMT this year.
- How much is the AMT exemption?
- What is the Alternative Minimum Tax (AMT)?
- Can I claim the AMT (Alternative Minimum Tax) credit?