1099-NEC on Stock Option

1lbarrett — Thu, 09 Feb 2023 23:51:15 GMT

While employed I was offered stock option. I t was vested over a five year period which I completed. The stock was granted to me at no cost. When I retired, but before I left the firm, I sold the stock back. The payout rules were to pay me over a three year period starting three months after my last day at the firm. I have started receiving the payments in 2022. I received a 1099-NEC for the income. My question is - Shouldn't this count as income on a W2 or 1099-MISC? I earned the money while employed with this employer. I am not self employed receiving this income. Thanks to all.

Re: 1099-NEC on Stock Option

ThomasM125 — Fri, 10 Feb 2023 00:11:56 GMT

Yes, it should have been reported on a W-2 form as wage income. The best thing to do would be to get your employer to correct this. Otherwise, you will need to report the 1099-NEC in TurboTax and indicate that it should have been reported on a W-2 form. You will see an option for this after your enter the 1099-NEC form as follows:

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1099-NEC on Stock Option

Re: 1099-NEC on Stock Option