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Level 2
posted Jun 3, 2019 1:50:43 PM

Exercised NQSO (non-qualified stock option) in 2018&hold them until 2019. Income correctly reported on w-2, but 1099B doesn't include this NQSO. Report in 1099B anyway?

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1 Best answer
Expert Alumni
Jun 3, 2019 1:50:48 PM

If you exercised and held NQSOs in 2018, and did not sell them in 2018, then there is nothing to report, other than the income that is already included in box 1 of your W-2.  If you sold in 2019, you will report the sale then.  Your cost basis will be the amount you paid plus any compensation added to your W-2 in 2018 due to the difference between the option strike price and the share price at the time of exercise.

3 Replies
Expert Alumni
Jun 3, 2019 1:50:48 PM

If you exercised and held NQSOs in 2018, and did not sell them in 2018, then there is nothing to report, other than the income that is already included in box 1 of your W-2.  If you sold in 2019, you will report the sale then.  Your cost basis will be the amount you paid plus any compensation added to your W-2 in 2018 due to the difference between the option strike price and the share price at the time of exercise.

New Member
May 15, 2021 3:56:30 AM

Assume the same question, but now I just sold the shares I held for 1 year. How do you get to the interview where I enter this sale? The NQSO interviews only asks if you've done a same day sale.

Expert Alumni
May 16, 2021 6:24:55 PM

Enter your 1099-B and adjust the basis to include the amount added to your w2 plus any sales of expense. See Where do I enter a 1099-B?

 

 

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