If you exercised nonqualified stock options (NQSOs) last year, the income you recognized at exercise is reported on your W-2. It appears on the W-2 with other income in: Box 1: Wages, tips, and other compensation.

Do you pay taxes twice on stock options?

In a normal stock sale, the difference between your cost basis and proceeds is reported as a capital gain or loss on Schedule D. And therein lies the rub: Unless you adjust your cost basis, by adding in the compensation component, that amount will be taxed twice — as ordinary income and a capital gain.

Where do stock options go on a W-2?

Stock Options. If you exercised nonqualified stock options (NQSOs) last year, the income you recognized at exercise is reported on your W-2. It appears on the W-2 with other income in:

What happens to restricted stock on a W-2?

If you made a Section 83 (b) election to be taxed on the value of restricted stock at grant, your W-2 for the year of grant, not vesting, shows the income and withholding. If you exercised nonqualified stock options (NQSOs) last year, the income you recognized at exercise is reported on your W-2.

Do you have to report stock compensation on Form W-2?

Along with snowflakes, Form W-2 is in the air—or rather, hopefully either in your safe possession or on its way to you. Employees who had income from stock compensation or an employee stock purchase plan in 2014 must understand where that income is reported on Form W-2 so that they can complete their tax returns properly.

What do I need to know about my W-2 form?

By now you’ve probably received your Form W-2. Remember that it’s not just for reporting your salary to you and the IRS. Your W-2 includes income from any other compensation sources you may have, such as stock options, restricted stock, restricted stock units, employee stock purchase plans, and cash bonuses.