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Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
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long term incentive award of stock

Customer Question

In January of 2007, I was awarded 693 shares of company stock as a reward for performance. Those shares were to vest in 4 annual installments of 25% each beginning on the 1st anniversary of the grant date. (long term incentive award - LTIA) In January of 2008, 173 shares vested. I was displaced in Sept and informed that the rules of the LTIA were that in order for any additional shares to vest, I'd have to be employed. In looking over my final pay stub, I think I may have been taxed on the shares that were not vested. Since I don't have 520 of the original award - can that be right? From a tax return perspective - is there anything that I can do to protect myself? Thanks for any input you may have.
Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.

If the shares did not vest and you will forfeit them then they should not be included in your income. If they have been included in your income then you should contact the company to have them correct this.


See "Restricted Property" on pages 12 - 13 -