Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Mar 25, 2021 8:18:49 AM

83(b) and reporting income on a W-2

I am a co-founder of a startup and received shares in the company. I think the shares have already vested (though they might be on a vesting schedule - not positive). I completed an 83(b) election last year. The fair market value of the shares on the 83(b) was indicated as $300. I also paid the company $300 for the shares.

 

My question: Do I need to report any income on the $300, either on a W-2 or 1099? At first I thought I did, but now that I realized I already paid $300 for the shares, does that mean I don't need to report income on them?

 

Just want to make sure I don't do anything to screw up my 83(b) election. Thanks so much! 

0 1 245
1 Replies
New Member
May 15, 2021 12:12:36 PM

My account who is experienced with startups says that the stock award is not income and does not have to be reported as such if fair market value was paid for it.