StockPlan Connect Has Replaced Benefit Access. The type of exercise impacts your income tax liability. If you do not currently have a brokerage account with Morgan Stanley, we will open a optiojs purpose account for you. Added to your activity feed:. Well, for one thing, it doesn't help that it's been opposed for years by the company behind the most popular consumer tax software — Intuit, maker of TurboTax.
Hello - I am trying to figure out how to report a "sell-to-cover" exercise of stock options in TurboTax. How exactly do I report that the sale of these stocks were used to pay for taxes since this was a sell-to-cover exercise? I believe I need to adjust this cost basis. Can anyone please help me understand what the proper cost basis should be, and how exactly to report it?
You don't report "that the sale of these stocks were used to pay for taxes" at all. All of that money went back to the employer. In a "same day" sale then the most common result from entering the sale is a small loss due to selling commissions and fees. I've given this same advise repeatedly and posted a pictorial step by step guide, for the sale of stock acquired via an RSU, but incengive process is applicable to any employer incentive stock plan salehere oparty.ru Tom Stck Thank you!
I had seen your instructions regarding RSUs, but I wasn't sure if exercising stock options turbotax incentive stock options the same way. It actually is starting to make sense. You've been a great help and your explanations are clear! I'm talking about NQSO's in my question. I really hope Tom Young sees these comments and answers soon! Or someone from TurboTax Deleted. Cost basis associated with these shares is not adjusted for any compensation income that was associated with those shares in the year of tturbotax.
It seems the taxes really have no bearing on this since they are paid out after the fact with the money I got from the exercise. Tom, I've incentibe all you info on this, and appreciate it. For both NQSO's and ISO's exercised and sole in the same year the compensation income is the "spread" between the strike price and the FMV at exercise.
If you did not sell all the ISO shares by year end then you need to report those shares using the "ISO Exercise and Hold" interview. I had several lots of NQSO's that I exercised as optons to cover" in June, then in September I cashed out the stocks that I got netted afterwards from the turbotax incentive stock options. If I just take one of the lots as an example, then I can extrapolate the method to the others.
These NQSO's have been sitting around vested for many years and I finally exercised them. Holy Cow - what a mess! Thankfully I have all the records and details I need to fix it. I have a similar situation. What turbo tax entries do I make to capture the compensation from the shares I ended up holding? You can only apply the basis for the shares sold to the sale, not all the shares received, some of which were not sold.
That would mean you would have no basis in the shares not sold, an illogical condition. That applies to ISO's and NQSO's As far as getting the compensation reported correctly, and this applies to NQSO's because NQSO's create compensation AT VESTING, you must tell TurboTax about ALL the shares vested, not optikns the shares sold. When I tell turbo tax about all of the shares vested, can I do that with one entry or do I need two entries?
People come to TurboTax AnswerXchange for help and answers—we want to let them turbotax incentive stock options that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines: Saved to your computer. Select a file to attach:. Ask your question to the community. Most questions get a response in about a day.
After you register or sign in, we'll return you to this page so you can continue your participation in the community. Why Sign In to TurboTax AnswerXchange? Sign in to TurboTax AnswerXchange. Why do you want to report this? Back to search results. How to report sell-to-cover exercise of stock options? I've given this same advise repeatedly and posted a pictorial step by step guide, for the sale of stock acquired via an RSU, but the process is applicable to any employer incentive stock plan salehere oparty.ru Tom Young.
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Non-Qualified Stock Options - TurboTax Tax Tips & Videos
Non Qualified Stock Options Questions. WHAT DOES NON-QUALIFIED STOCK OPTION MEAN? A non-qualified stock option does not qualify you for preferential tax.
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How/Where do I enter a "supplemental Stock Plan lot detail "? It is for stock options that have already been reported on both w-2 and so I am being taxed 2x.