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Tax Question: Does box 12 V on the W-2 always need to equal…

Tax Question: Does box 12 V...
Tax Question:
Does box 12 V on the W-2 always need to equal the gain on schedule D? There are incentive stock options and the detail looks like all gain was report on the W-2 ($300+ K), but when I look at code V on the W-2 it is listing only $63K. Am I doing something wrong?
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Customer reply replied 3 months ago
I attached detail of the transaction
Answered in 14 minutes by:
3/25/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,141
Experience: Taxes, Immigration, Labor Relations
Verified

Amount from box 12 V is additional amount which is included into W2 box 1.

You will need to ADD that amount to your basis reported on 1099B

Let me know if you need help with reporting.

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Customer reply replied 3 months ago
but it is MUCH less than the amount that is shown on all the detail statements and it appears that on the detail of the ISOs that they wages were reported on box 1. Can this be possible?
Customer reply replied 3 months ago
Please refer to the attachments

Let me verify...

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Customer reply replied 3 months ago
here's some more detail
Customer reply replied 3 months ago
more info
Customer reply replied 3 months ago
last one

The amount from box 12 V = $63553

That amount is INCLUDED into your taxable wages on form W2 box 1 - which is larger - not less as you stated.

So far indicated in 12 V tells us that amount was already taxed.

That is not directly related to any other reported transactions.

How that amount was determined is a different issue.

With all uploaded statements - I am looking for 1099B form from your broker - and seems as you missed it (or I missed it?).

That warm is used to determine the gain.

Can you verify.

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Customer reply replied 3 months ago
The broker stmt is attached
Customer reply replied 3 months ago
The broker stmt shows a gain of $307,083 which is much larger than 12V on the W-2, but agrees to the detailed stmts showing that the gain is taxed for income taxes. Can you tell what is going on?

Ok - sorry indeed I overlooked that statement...

Form 1099B reports sale transaction and some additional information.

That form doesn't report your gain.

The gain will be calculated on form 8949 which will be attached to your tax return.

.

Form W2 box 12 V doesn't report the gain - that is not correct interpretation.

That amount report the amount which was included into your taxable wages

Whether that amount was determined correctly or not - that is a different issue.

If you think it is reported incorrectly - you will need to talk with your HR.

.

For reporting purposes that amount from W2 box 12V is added to your basis.

When you report the same transaction on form 8949

https://www.irs.gov/pub/irs-pdf/f8949.pdf

that amount will go to column (g) Amount of adjustment - and your calculated gain will be reduced by that amount.

.

It looks however - that mistake was made by your payroll person - and the amount in W2 box 12 V is not correct...

You will need to ask the for correction before you will be able to file..

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Customer reply replied 3 months ago
Okay. Thank you!
Customer reply replied 3 months ago
but wait
Customer reply replied 3 months ago
look at box 14, it says $244,150.62 is stock option and box 12V is $63,553 which equals $307,083 (the gain on schedule D). Should box 14 be put into box 12V?

box 12 V - that is an amount included into wages.

box 14 is for information only and is not reported as taxable wages.

But we need to verify if taxable wages are reported correctly?
Can you verify if W2 box 1 amount looks correct?
If that is correct amount OR it is about $300k less than it suppose to be?

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Customer reply replied 3 months ago
I think it's correct. So does W-2 need to be amended to reflect 12V or is it a moot point?

If total amount in box 1 is correct - nothing we need to amend

Then your gain is correct - just be sure to adjust your basis on 8949 - to exclude the amount which is already taxed as wages.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,141
Experience: Taxes, Immigration, Labor Relations
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Customer reply replied 3 months ago
Thanks so much!
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