How do I include an 83(b) election if I received no salary/W2?

[ajm6587]

Last year I paid fair market value for restricted stock and filed an 83(b) election within 30 days. No money was earned and I did not receive a W2. Do I need to include anything in my return to make note of the 83(b) election?

[SidneyY]

Did you receive the w2 for this ?

[ajm6587]

Great! No, I did not receive a W2 from the company.

[erica3]

How did you fill out your 83B election?

[SidneyY]

If you did not receive the W2 for this, you do not have to report this in your tax return.

[techwesr]

Hello, I am in this same situation. So if I don't have to report this on my taxes then does that mean I do not need to pay taxes on the money paid for the shares? I thought I would need to pay income tax on the fair market value of the stock

[Ronald-So]

I have exactly the same issue.  Does anyone know how to handle this?  Do I need to pay income tax on the FMV of the stock (not even publicly traded yet).

[ashishs-sharma]

Can you please include any relevant IRS documentation that can confirm that nothing needs reporting with IRS tax returns?

[JFSH]

Would love to see some documentation of this or a slightly more detailed explanation. My understanding is that because no money is earned in this scenario, no W2 or 1099MISC is issued, so we don't have to file anything.

[samrapow]

What did people in this situation end up doing? I'm in the same situation this year.

[VictoriaD75]

83b elections should automatically be reported on your W2. You will not receive a separate form. The 83b must be filed within 30 days of the award, but the IRS no longer requires that a copy be filed with your tax return.

The award should be reported entirely in box 1 of your W2 in the tax year in which it was granted. Once you have received your W2, be sure to check this information. You may need to contact your employer for a corrected W2 if it was not reported correctly. Any associated withholding would be included on box 2 of your W2. If they did not withhold for the award, this will likely increase any tax due on your return. Any dividends earned should be reported separately on a 1099-DIV. Because these transactions are reported on a W2, tax reporting becomes simple.

After the stock vests, any sales transactions will be reported in the year that they occur on a 1099-B. Those transactions most likely did not occur in the year of the award.

How to Report RSUs

What is Restricted Stock and How is it Taxed

[jv1975intit]

I am in this situation as well.  I earned salary in 2019 from a startup and received a stock grant (and I filed an 83b).  I received a w2 but it only included my cash compensation and not the value of the stock.

I stopped working for the company last year and it is now essentially out of business (it exists in name only and my stock is worthless).  I’m attempting to have a corrected w2 issued but I’m not optimistic that this will happen.

Assuming I do not get a corrected w2, what do I do?  I assume I still do have to report the income (I have seen comments in this forum to the contrary but with nothing to back it up).  *How* exactly (i.e. in TurboTax) do I report this income?

[Nick_M28]

What if you are the employer?  How do I get generate a W2 for myself and a co-founder in QB that reflects this other comp.? @VictoriaD75 

[Shakira3]

But the question is what to do or how to report the granted stocks if that year the person didn't receive a salary.  Let's say it's just the beginning of the Startup.  83b election was made for two founders.  No other compensation.   The 83b is done for $100 (10000 shares @0.01).   But no W2.   Where do you report this.   And if you don't report it, does it invalidate the 83b at the moment of selling?

[KristinaK]

You will report income related to 83(b) election as other income not already reported on a Form W-2. That information will flow to line 1 of Form 1040. 

Please follow the steps as outlined by LenaH: 

1. Open your return.
2. Click on Federal on the left-hand side of the screen.
3. Go to Income & Expenses.
4. Scroll down to Less Common Income.
5. Click Start next to Miscellaneous Income.
6. Click Start next to Other income not already reported on a Form W-2 or Form 1099.
7. Continue past the pages that do not apply.
8. Answer Yes on the page Any Other Earned Income.
9. Choose Other on the page Enter Source of Other Earned Income.
10. Follow the on-screen information. 

Since you are reporting the income on your return you do not need to worry about invalidating the election. 

@Shakira3