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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13344
Experience:  15years with H & R Block. Divisional leader, Instructor
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We have employees that had stock. Do I have to report

Customer Question

hello we have employees that had stock. Do I have to report that information in Box 12 code V?
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: Do I have to report the RSU (Restricted stock amounts) in Box 12 codeV of the W2
JA: Anything else I can tell the Accountant before I connect you two?
Customer: no
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Submitted: 8 months ago.
Category: Tax
Expert:  Robin D. replied 8 months ago.
HelloBox 12 Code V represents income from exercise of nonstatutory stock option(s) (included in boxes 1, 3 (up to social security wage base), and box 5). The employer must also include the taxes it withheld on the fair market value of the award in the respective withholding tax boxes of the W-2.When their shares vest, the employer must withhold Medicare and Social Security taxes from the fair market value.When the employee actually receive the shares, the employer withholds federal and applicable state and local income taxes.If vesting and their receipt of the shares happen at the same time or in the same year, their W-2 should show the Medicare, Social Security and income tax withholding amounts.In Box 14, labeled “Other” on the W-2, the employer may specify the amount of restricted stock that’s in the employee's taxable wages boxes.Their taxable wages include all forms of compensation you received, including their salary and the restricted stock. By stating their stock amount in Box 14, the employer makes it easier for the employee to comprehend how much of the amount in the taxable wages boxes represents the award.

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