ISO Exercised/Sold same time, but no 1099B issued What do I enter?

Forum|Forum|4 years ago
February 1, 2022
2 replies
0 views

Hi Please help me if you can,

ISO shares were exercised & sold one the same date in two transactions:

1) Grant date 3/10/2020 and exercised/sold 6/3/2021 (exercise price 1.03 FMV 6.61)

2) Grant date 12/4/2018 exercised/sold 6/3/2021 (exercise price 0.23 FMV 6.61)

My W2 states: "Less Misc Non Taxable Comp" under Gross Adjusted Income and in box 14 lists the $ amt as ISO

I received 2 Form 3921s one for each transaction but did not receive a Form 1099-B

How do I enter this information and do I NEED to enter the info or since the $ amount is included on my W2 I don't have any additional info to file? This is so confusing.

ThomasM125

Level 15

Since you didn't hold the shares two years from the grant date or one year from the exercise date, the discount on the shares is taxable as ordinary income. This should be reflected as income in box one on your W-2 form. If so, then you just need to enter your W-2 form, no additional entry is necessary.

However, you need to make sure you won't receive a 1099-B reporting the sale, as that may show sales proceeds as being more that your cost basis. If that happens, you need to report the investment sale and adjust the cost basis to reflect the income reported on your W-2 form.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Rick19744

Level 13

To summarize your situation:

You have a disqualifying disposition
As a result, you will recognize ordinary income as noted by @ThomasM125
I would not file your return for at least 2 weeks. Form 1099-B deadline was January 31st to be mailed out. As a result, you may still receive one. Ask your company if they expect one to be issued to you. I would be surprised if you do not receive one.
Make sure you understand the amount reported on your W-2 and form 3921. You should be able to reconcile those two forms based on your facts.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.