Should my ISO income be reported on my W-2?
April 15, 2003
Date: Fri, 21 Mar 2003
I’m hoping you can lead me to a resource where I can confirm something regarding stock options. We sold some ISOs to make a cashless exercise to purchase other ISOs. Will the income from the disqualified disposition be reported on Form W-2? Is the AMT adjustment eliminated for same-day sales?
Thank you in advance for my advice,
The employer should report the income from the disqualified disposition on Form W-2. No income tax withholding or employment taxes are required for this income under the rules now in effect.
There is no AMT adjustment required when there is a disqualifying disposition of ISO stock in the year of exercise. I don’t have time to document this answer.