Reporting 83(b) Election Income

[dcarney]

How do I report 83(b) election income on my taxes when it was not included on Line 1 of my W2 and my employer is not sending a corrected W2?

[LenaH · Accepted solution]

83(b) elections should automatically be reported on your W2. However, since your employer did not include it on your W-2 and will not issue a corrected W-2, you can report it manually on your return.

To report this income, please follow the steps below:

1. Open your return.
2. Click on Federal on the left-hand side of the screen.
3. Go to Income & Expenses.
4. Scroll down to Less Common Income.
5. Click Start next to Miscellaneous Income.
6. Click Start next to Other income not already reported on a Form W-2 or Form 1099.
7. Continue past the pages that do not apply.
8. Answer Yes on the page Any Other Earned Income.
9. Choose Other on the page Enter Source of Other Earned Income.
10. Follow the on-screen information. 

[Edited 3/5/22 l 6:12AM PST] 

@dcarney

[dcarney]

Thank you so much for this information. This is extremely helpful.

[Mgamboa]

What if I did not receive a w-2 and was paid purely in equity?

[DMarkM1]

The process is the same as outlined by @LenaH.  You are still adding the value of the equity to your taxable income for the tax year.  

[Mgamboa]

While following your instructions Turbotax is requiring me to fill out form SS-8, but I am not unsure about whether I am an employee or an independent contractor. I am an employee. Am I required to file form SS-8?

[DMarkM1]

The form SS-8 would not be required at this time as the employer is treating you as an employee; they just didn't report the income.  Select reason code G since codes A, C nor H apply.  

[Mgamboa]

Yes, I selected Option G:

But the next Screen tells me I must file form SS-8:

[AbrahamT]

Select no because the SS-8 is just the form sent to the IRS for worker status purposes inorder to determine whether you are a full time employee or an independent contractor. In your case, you and your employer know that your'e a full time employee. He simply failed to send you a W2 and withhold the ss. and fica taxes from those wages which is now reported on 

8919-T.  When you go into Forms mode, simply go into column C, hit the dropdown arrow and click no entry since the SS-8 form doesn't apply to you. 

Enjoy the rest of your day!

[camalj]

How does this differ when I am a contractor that in addition to my hourly pay was awarded stock that I filed earlier with an 83(b)? The 1099-NEC I was provided did not include my stock award FMV @LenaH