I redeemed stock options and RSUs from my Employer in 2016 as part of my benefits. Do I need to include the info from 1099 B or is it already included in W2?

[TomYoung · Accepted solution]

I don't know what you mean by "redeemed."  If you exercised stock options then the income resulting from the exercise - the spread between what you paid for the stock and the worth of the stock exercised - should be on your W-2.  If RSU's vested then the income resulting from the vesting - the spread between what you paid for the stock and the worth of the stock that vested - should be on your W-2.  In both cases any sale of the stock you received is irrelevant to the reporting on the W-2.  But apparently you did sell some or all of the stock as you obviously got a 1099-B.

If you got a 1099-B then you must enter the sales.  The IRS will be looking for those sales on your income tax return.

If you use the correct basis when reporting the sales, which is not simply the price you paid for the stock, (and reported to you on the OFFICIAL 1099-B), then there will not be any "double reporting" of income.  In both cases the correct per share basis to use is the same as the per share value used by your employer to calculate the compensation created by the exercise or vesting.

Tom Young