itonewbie
Level 15

I understand that both the NSO and RSU are ordinary income, my question is when I go back to the W2 and try to reconcile to box 14, these are crazy far off.


When you say Box 14 is far off, are you referring to RSU or the total of RSU and NQSO?  The reason I ask is that NQSO is reportable under Code V in Box 12 instead of Box 14.

Are the number of shares acquired via NQSO and RSU matching against those reported on the 1099-B?  If not, did you account for whether your client had retained some of those shares or had acquired company stocks from the open market?


Client get's NSO grant in 2015 for  shares. Client exercises the options and sells the same day in 2019.

What your client had was likely a cashless exercise.  Question is whether your client sold enough just to cover the option price and tax withholding, sold everything on the same day, or perhaps exercised more options than sold.


Client gets RSU in 2019 and sells when company is sold in 2019.

You're sure the RSU was delivered in stocks?  Especially if the company was going to be sold in the same year, the units could have been delivered in cash instead.


Also, the client received a 1099-B for both, I checked and all but the RSU have had taxes withheld. 


Since the sale of shares are not subject to tax withholding, are you referring to withholding on the W-2?  RSU is subject to withholding, just like NQSO.  There is no reason why no tax was withheld on RSU.  Something is not right.

Have you reconcile all the numbers against your client's payslips for the year, particularly for the period(s) during which the NQSO's were exercised and RSU vested?

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