Where to enter 83(b) information

[maglib]

yes it does.  So if there is NO 83(b) election you pay no tax at grant (because the shares are unvested), but instead recognize income when the shares vest and thus have ordinary income tax to pay.  Often shares are sold on vest to pay the estimated taxes at vest.  If you do an 83(b) election you pay tax at grant date.  @josh.noe  please read updates, I was in a rush on last comment and updated and had missed the no originally.
Assuming you paid nothing for your restricted stock, you will be taxed on the value of your restricted stock as determined at grant (if a Section 83(b) election is filed), or at vesting (if no Section 83(b) election is filed), in each case at the applicable ordinary income tax rate.  When you later sell your stock, assuming it’s been more than one year from the date of grant (if a Section 83(b) election is filed), or more than one year from the date of vesting (if no Section 83(b) election is filed), the additional gain will be taxed at the applicable long-term capital gains rate.  Because the long-term capital gains rate will be lower, the goal here is to get as much of your gain as possible taxed using that rate, rather than the ordinary income tax rate.
If you receive restricted stock worth a nominal amount, it virtually always makes sense to file one.  However, what if instead of receiving 100,000 shares of restricted stock worth $.01 per share, you received 100,000 shares of restricted stock worth $1.00 per share?  Filing a tax code Section 83(b) election would immediately cause you tens of thousands of dollars of tax.  And if the company subsequently fails, and in particular if it fails before your stock vests, you likely would have been economically better off to not have filed a Section 83(b) election.

[suzyquzy]

OP already said they valued the interest at about $100. If OP was vested there probably wouldn't be an 83(b) election because there would be no substantial risk of forfeiture. The 83(b) election doesn't mean you pay no tax at grant. It means you elect to include the value now. Said value could be zero.

[emmarao]

In need of some clarification around not sending in the 83(b) form within the 30 day period. As such, what  is the value of the restricted stock "at vesting"? Is this the value from the effective date of agreement or when fully vested?  Trying to get a better gauge of tax impact under this scenario with a 4 year vesting schedule + anticipate the company to do well. thank in advance.

[maglib]

You always send within 30 day period.  This is that you don't send an 83(b) with your tax return.
The value at vest, will be for what the FMV at vest is.  Normally you make 83(b) elections if you assume there will be large growth in the value of your shares or if the FMV on grant is deminimis as you are taxed on the value on grant if you make 83(b) elections.  If you don't and say the stock rises you pay tax on the FMV at vest at ordinary income tax rates.

[maglib]

If you are fully vested, the shares are not subject to a risk under 83b, then no 83b election is required. But you should confirm your documents don’t subject your shares to a risk of forfeiture under 83b with your lawyer or whoever prepared the documents. This does not constitute legal advice.

[John K2]

If an 83(b) election was filed with the IRS but the ordinary income was omitted on the Income Tax Return, does the IRS allow the tax payer to amend the 1040 to include the income related to the 83(b) election?

[yhyhy314]

If I did not file my 83(b) in 2020 for ISOs that I early exercised in 2020 (which will vest in 2021), how should I report this in TurboTax? Should I just not include it when I am reporting my 3921 I got for 2020? if I do include it, it incorrectly calculates the exercise as contributing to my AMT calculation. Thank you in advance!