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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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my ISO income from exercise was reported on W2 block 14..thereby

Customer Question

my ISO income from exercise was reported on W2 block 14..thereby jacking my total compensation up. When I do Schedule D it matches the total in block 14 but puts it on line 14 1040 so I get double dinged. How do I back that out?
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

W-2 block 14 - contains informational reporting.


The IRS requires the company to report the income from the disqualified disposition on W-2.

The gain on the sale is being reported on his W-2 as wages and considered a disqualifying transaction. The amount therefore should be included into box 1 - please verify.

In the box 14 you likely see what amount of ISO was included as wages and should use this amount as basis on the schedule D - that will eliminate possibility of double taxation.

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