Stock options and taxes....

[mom2thegirls]

Early in 2007 I exercised 1300 stock option shares. No taxes were taken out. When declaring this on the 1040 form, do I need the original option price or can I just report the amount of money I received?

[dtdoda]

Are you sure? Stock options proceeds (the difference between the grant price and the value that they sold for) should be included as regular income on your W2. Taxes would be taken out.

You should also get a 1099-B. That will list the gross proceeds and would go on schedule D but it should net to zero and you do not pay taxes on the amount a 2nd time.

[mom2thegirls]

Nope. No taxes were taken out. I had a 1300 shares that I sold at $55. The options were a combination of two different strike prices. The final value was $10,300 roughly.

[dtdoda]

Interesting. I've never been in that situation. In fact, I've never heard of it.

Here's some info:

http://www.quicken.com/cms/viewers/article/taxes/33890

[mom2thegirls]

It was called "iso..... something". I was just grateful for the money.

[dtdoda]

ISO = Incentive Stock Options.

Most companies issue NISO (Non-incentive) to employees.

Here is some info on ISO options:

http://www.fairmark.com/execcomp/iso.htm