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Date:   Thu, 10 Mar 2005
From:   Lee

Michael,

The 1099-B that I received from my broker doesn't show federal withholding for the sale of my option shares. The ordinary income is included with my wages on Form W-2. Is this an error?

Answer

Hello Lee,

No. The withholding for the transaction should also be included on your W-2 form. The broker withheld taxes as an agent for your employer.

Good luck!

Mike Gray

For more information about non-qualified stock options, request our free report, Non-Qualified Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.