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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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W2 Box 12 Code V higher than expected

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Why would the amount reported in box 12 code V of my W2 (say $50,000) be substantially more than the check I received (say $37,000) from exercising nonstatutory stock options?

This is the value of the stock options you were granted. The law require your employer to include this amount in your taxable wages and employment taxes and income taxes were withheld. This amount should be already included in the box 1 on the W2.

You may also receive 1099B and should report the transaction on the Schedule D. Be sure to include the amount from the box 12 code V of the W2 - as a basis for stock sold - you may realize a gain or a loss that will reduce your taxable income.

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