Where do you enter transfers to a former spouse of nonstatutory stock options or nonqualified deferred compensation (See Table 5 in IRS Pub 504)?

rtmajik — Sat, 01 Jun 2019 20:40:27 GMT

Table 5 indicates that in certain cases, you "don’t include any amount in gross income upon the transfer" of certain interests (e.g., nonstatutory stock options and nonqualified deferred compensation). There doesn't seem to be any place in TurboTax to reduce your wages as reported on your W-2, for example, for these types of transfers. Where does one enter this type of transfer to a former spouse in TurboTax? Likewise, where does one enter the related allocation of tax withholdings transferred to a former spouse in TurboTax?

You are correct about the information in IRS Pub 504 indi...

DDollar — Sat, 01 Jun 2019 20:40:28 GMT

You are correct about the information in IRS Pub 504 indicating that when you transfer interests in non-statutory stock options and non-qualified deferred compensation you don’t include any amount in gross income upon the transfer. But it sounds like you exercised the options and took the deferred compensation. You can't enter a transaction like that in TurboTax. The stock options and/or deferred compensation should have been made available by your employer to/paid to your former spouse, who would then be responsible for paying the tax. You cannot transfer tax withholding to another person. If your employer made payouts directly to you, they are obligated to report it as compensation to you and withhold the appropriate payroll tax. If the options were made available to, and the deferred comp paid to your former spouse, then you should have your employer correct your W-2.

topic Where do you enter transfers to a former spouse of nonstatutory stock options or nonqualified deferred compensation (See Table 5 in IRS Pub 504)? in Investors & landlords

Where do you enter transfers to a former spouse of nonstatutory stock options or nonqualified deferred compensation (See Table 5 in IRS Pub 504)?

You are correct about the information in IRS Pub 504 indi...