My confusion with the ISO stock option purchase is the paystub indicates the purchase impacted my earnings. However, I don't see any reference to the purchase on my W-2 other than the higher Wages, TIPS and OTHER COMPENSATION. In addition, my Federal Taxes went up substantially when I entered the 1099B form from my Brokerage Account.
I saw in some other questions in the community reference box 12 on the W-2 containing an value with code V. They seem to suggest adjusting the amount of the stock option purchase based on this value. However, that value is not on my W-2 form.
How to do I account for this Stock Option purpose without accounting for the value as both standard income and an additional stock option purchase.
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So you do need to report both pieces. However, they key to making sure you aren't paying tax on this twice is to make sure that the basis taken against the proceeds on the 1099-B. It probably is already included, but you can check by taking a look at the gain on the stock sale - it should be very close to zero.
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