Ephesians3-14
Level 8
01-31-2021
10:37 AM
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Wait - you said Box 1 (Wages) and Box 2 (Federal tax withheld) are the same? How can that be? Was that a typo in your original post?
In this situation, I've usually seen a W-2 issued, so I don't think that's a big deal. Just report it as such.
He'll also get a 1099-B, so be sure to adjust his cost basis for the "spread" between the FMV on the date exercised/sold (I assume he sold the stock) and the option price.