IRS Clarifies Form W-2 Reporting for Stock Options

Guidance on reporting income from equity and stock options on Form W-2, Wage and Tax Statement, was provided Dec. 6 by the Internal Revenue Service.

The agency, during its monthly payroll industry teleconference, also said additional guidance is expected on reporting moving expense reimbursements related to the tax code overhaul (Pub. L. 115-97) that took effect Jan. 1, 2018.

Income from qualified equity grants under Internal Revenue Code Section 83(i) reported in Form W-2, Box 12, with code GG also should be reported in Box 1 of the W-2, but not Box 3 or Box 5, said Mike Swim, an ...