Should my option exercise withholding show on my 1099-B?

March 23, 2005

Date:   Thu, 10 Mar 2005
From:   Lee


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?


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, “Executive Tax and Financial Planning For Non-Qualified Stock Options”.

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