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If I exercised options from my employeer by

purchasing/selling in the same transaction...
If I exercised options from my employeer by purchasing/selling in the same transaction, on same day, would I need to complete form 8949?
My W2 appears to include all of my exercised options dollars, do I still need to include the separate 1099R and 1099DIV
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Answered in 1 minute by:
3/13/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,398
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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Yes, the sale will most likely have a small loss but if you do not report that (even though the tax is shown on your W2) the IRS will see the reported sale and use $0 as your cost which would calculate a gain and tax.

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Customer reply replied 5 months ago
since this is the first time I have exercised options, is my assumption correct (even though my emoloyee's CSP couldn't confirm) that the W2 does indeed include all exercised options?

You will generally see something in Box 12 of your W2 that indicates the option exercise

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,398
Experience: 15years with H & R Block. Divisional leader, Instructor
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Robin D. and 87 other Tax Specialists are ready to help you
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Customer reply replied 5 months ago
have another question.......first year for pension. If amount of pension is included in W2, do I still need to report that amount found on the 1099-div on line 12 of 1040a

Your pension is not reported unless you received a distribution. You would receive a 1099R that reports that distribution. You do not report amounts that are contributed to your pension

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Customer reply replied 5 months ago
this was my first year for distribution and I did receive a 1099R. Ive added that info to 1040a line 12b and included taxes paid in line 28. Are those dollars excluded from W2? Seems they should be since otherwise it would be duplicate reporting of income and taxes/

When you get money form your pension it is not reported anywhere on your W2. It is only reported on the 1099R

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Customer reply replied 5 months ago
Hi Robyn,
I have another question.....working through all the paperwork paths to report proceeds from exercised options, it appears I need to report capital gains on line 13 of 1040 after completing a schedule D. But those same proceeds are also included in my W2. All of the options were from my former employer. Must I report on line 13 as capital gains if its included in W2?

Yes that is correct. Your shares were sold to pay the tax on the them. The reporting was on your W2 because your employer gave you those but the IRS just sees that shares were sold. You report the sale to show that you had no additional gain other than what was on the W2 already. In fact there is most likely a small loss due to the cost to the broker.

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