Is there a difference in how you enter nonqual stock option information in exercise and hold versus exercise and sell? If so, what is the difference?

[TomYoung · Accepted solution]

IF you have a NONSTATUTORY option, (a Non-Qualified Stock Option is an example of a nonstatutory option), THEN you don't need to use the "ISO Exercise and Hold" interview at all.

The "ISO Exercise and Hold" interview is only required for Incentive Stock Options (ISO's), a form of statutory option, when you exercise and then don't sell ALL the stock by year end.  The interview calculates the needed adjustment to income for AMT purposes.

No entry is needed for the simple exercise of a NQSO.  It's only the sale of the stock acquired via the NQSO that needs reporting, using the "Stocks, Mutual Funds, Bonds, Other" interview.

Tom Young

[dv20191]

In 2019 I had to exercise Stock Options provided by my company or I would loose them.  The transaction was a buy then sell and the proceeds were taxed.  The problem I am having how is now that I am newly retired the SSA is telling me since my AGI was so high in 2019 I have to pay double the amount for Medicare B.  It was my understanding that one time transaction of this type should not require for us to pay additional amounts.  Should there have been some type of IRS form completed for this transaction.  As it stands Turbo Tax did not recommend any form when completing my taxes in 2019.  If I should  be going to another area with Turbo Tax please let me know.  Any help is appreciated.

Thank you,

dv20191