Question

How do i fill taxes paid for ESOP equity

Forum|Forum|3 years ago
February 18, 2023
1 reply
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Hi,

So in 2022 i left my previous employer and exercised bunch of equity that was vested. Some of the equity was given before i moved to the US. I was given 10K options, which 5K out of them were vested before i moved to the US and 5K were vested after i moved to the US. During the exercise of the equity, my previous employer charged me taxes for the 5K options that were vested after i moved to the US. The tax calculated was:

Net value = ((Fair market value -Exercise cost)* 5000)

The net value was viewed as income and I was charged taxes by a tax bracket as if my salary was the net value.

For example if the fair market value for 1 share was $4 , and exercise cost was $1 , the net value would be

(4-1 * 5000) = $15000. Which was viewed as if I earn 30K / month which. (pay period was twice a month)

The shares were never sold, just exercised by me.

I paid the taxes i was asked but it doesn't show us in my W2 and i didnt received a form that indicate my payment.

How do I report this? In other tax situations>Estimated Tax Payments??

TurboTax Free Edition Online

T

ThomasM125

The tax withheld should have been reported on your W-2 form in box 2. It is doubtful if they weren't reported there that the IRS has a record of them, as the only reporting from your employer would have been the W-2 most likely. So, you can report the taxes as estimated payments and if the total of your tax paid in matches what the IRS shows, you will get credit for it. But, it is likely the IRS just shows your W-2 withholding in which case you will not get credit.

I suggest you ask your employer if they reported the tax withheld to the IRS and on what form.

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