Options Trading Tutorial

When restricted stock vests, should the taxble income (included in Box 1, 3, 5…) also be reported under ‘Box12?

When restricted stock vests, should the taxable income (included in Box 1, 3, 5…) also be reported under ‘Box 12 Code V—Income from the exercise of nonstatutory stock option(s)?’ Or, are there no reporting requirements, allowing the employer to include it in Box 14 at their discretion?

Public Comments

1. The value of vested restricted stock should not be reported in Box 12 under Code V, but some corporations erroneously do so. Such reporting has no effect on your return because the amount reported in Box 12 has already been included in Boxes 1, 3, and 5.