How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29912
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

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: 9 years ago.
Category: Tax
Expert:  Lev replied 9 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.