Options Trading Tutorial

How to tax stocks? Accounting experts only please...?

My husband works in a company. I'm just wondering: 1) What's the difference between Employee Stocks Option, & Employee Stock Plan? The company bought all their stocks. According to my husband, the stocks option that the company gave them was already included in his W-2 & already been taxed. 1) Do we still need to file those stocks in our tax? We did not receive any 1099-B for the Employee Stock Option, but we did receive 1099-B for the Employee stock Plan. Thanks in advance. My husband's W-2, box 12a code is C & the amount only. But how can we declare the EMPLOYEE STOCK OPTION if we did not receive any form, such as 1099-B?

Public Comments

1. This can be a very complex issue but I will make an assumption that you have exercised the stock option and the W-2 has an amount in box 12 with a code of V. If so don't do anything with that. For any sales of the ESP reported on a 1099-B you will need to include those sales on a Schedule D.
2. the stock option that was taxed is yours until you sell it, and then you will determine your gain(or loss) at that time, report it on Sch D the stock plan is probably one in which you agree to purchase X shares of stock on a regular basis as a payroll deduction and you don't do anything with them until you eventually sell them, but you will need to know how much they cost you as you purchased them along the way