qbteachmt
Level 15

The other times I've seen 1099-Misc is when the stock was purchased and sold the same date, because the employer set up a brokerage to front the funds to buy the shares on behalf of the employee and make the sale. Example:

Now that you are vested, you already also want to sell the stock, and technically, you have not paid for the stock as of the date of the sale. The brokerage buys the stock by loaning you the funds, then sells the stock for you, takes their fee, and forwards that difference to you for ordinary income.

Let us know what you learn.

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