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hc216
New Member

Do I need to report 3921 and how?

Last year, I exercised some options (ISO) from the startup I work for. The company is not public, so these options do not value or do anything yet. This year, I received 3921 from my employer. It's showing information of how much they transferred me with the price I purchased, and FMV. 


I'm just holding these, did not sell or did anything. My question is that do I still need to file this to tax? I get a lot of mixed answer about whether I need to file or not. Like this post mentions that I don't need to?

 

If I need to file, then how? I purchased TurboTax Deluxe Download version, and I cannot find it. If I go to investment --> 3921, then it asks 1099-B which I never received. Then the platform also says I can do in Less common, but there is no where I can find this section in TurboTax Deluxe Download version. I chose Download version but I am not sure if this is missing feature and I made a mistake purchasing...

 

Thank you

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1 Reply
DavidD66
Employee Tax Expert

Do I need to report 3921 and how?

Form 3921 is not a form that must be reported on your tax return (like a Form W-2).  It does have important information that might need to be reported (or used to calculate information that is required to be reported).  The exercise of Incentive Stock Options (if you don't sell) is not a taxable event for "regular" tax.  It does create taxable income for Alternative Minimum Tax (AMT).  The "bargain element" of your ISO exercise is the difference between the exercise price and the fair market value a the time of exercise.  On your Form 3921, that would be the amount in box 3, minus the amount in box 4, multiplied by box 5.  If the amount is significant, it can trigger alternative minimum tax.  In that case, your stock has two different cost basis.  If the bargain element from your ISO exercise is minimal, you don't need to report anything.  You do need to maintain a copy of the form 3921 for your records.  If you want to enter it, type "Alternative Minimum Tax" in search, then click Enter.  This will take you to the AMT section.  

 

For more information, see this TurboTax article:  Incentive Stock Options 

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