Form W-2, Box 12, Code V nonstatutory stock options
Income from the exercise of nonstatutory stock options is included in Boxes 1, 3 and 5, so this amount carries to Form 1040, Line 1.
This reporting requirement doesn't apply to the exercise of a statutory stock option or to the sale or disposition of stock acquired pursuant to the exercise of a statutory stock option.
For more information about the taxability of employee stock options, refer to Publication 15-B.
If you have stock options that weren't reported on Form W-2 but need to be reported as ordinary income:
- Go to the Income folder
- Go to theIncomescreen
- Enter the stock option amount in theOther incomestatement and use code17 - Ordinary inc from stk options
Amounts you enter here are reported on Form 1040 line 1.
