How do I enter stock options from a foreign company?

[Anonymous]

I exercised stock options from a foreign company in 2016 (granted in 2011).  Proceeds from the sale were paid using the payroll system - and show as gross and net pay (taxes withheld).  Do I need to report this sale?  If so, how?

[TomYoung · Accepted solution]

I can only guess that you both exercised and sold the shares on the same day.  That seems to be implied here though that "proceeds from the sale were paid using the payroll system" does seem very odd as that's certainly not what typically happens in the US.

If it is indeed the case that you exercised the option, sold all the stock, the cash was passed back to your employer who included the "profit" (the spread between what you paid to exercise and the actual amount realized on the sale) on your W-2 and withheld taxes, then I can't see how you have anything to report.

Tom Young

[Anonymous]

Yes, this is exactly the case.  It was considered a "cashless exercise" and the spread/profit at exercise was included in my W-2 (taxes withheld).  Thank you!