Question

[California] Should I amend? Forgot to add exercised stock options but the spread is small

Forum|Forum|3 years ago
April 12, 2023
1 reply
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I exercised my startup ISO's, however the spread was very small (~$30). Due to the small spread, it didn't trigger AMT for me, so I did not report anything in my tax return because I wasn't aware that I had to. I didn't receive any tax forms regarding this exercise.

I have already submitted my tax returns for 2022, but upon looking back I noticed there is actually a row called "Stock options" to include this (California Adjustments — Residents, Section B, 8k.). My question is, since the amount is so small, should I even amend my return? And if so, do I have to amend both federal and state? Is this considered a part of my income? This would be for the state of California. Thank you!

Tax Advice

T

ThomasM125

The income is taxable but due to the amount involved the tax would be minimal. Since it was not reported to the IRS, it is the type of thing that would only come up in the unikely event of an audit.

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