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April 11, 2022
Question

How should I treat the incremental NQSO stock option payment for the first year earnout for sale of company? I am no longer an employee and did not receive a tax form.

  • April 11, 2022
  • 1 reply
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1 reply

April 19, 2022

Per Expert DavidD66:

 

"To report that income, while logged in to your return:

  • Click on Income & Expenses
  • Scroll down to "Less Common Income"
  • Select "Start" next to "Miscellaneous Income, 1099-A, 1099-C"
  • At the top of the list, click on Start for "Other income not already reported on a Form W-2 or Form 1099"
  • Answer "Yes" to "Did you receive any other wages?"
  • Click "Continue" through to the screen with "Any Other Earned Income"
  • Mark the button to indicate you received "employee compensation not reported on W-2"
  • Click on "Continue"
  • Indicate who the income was for (if other people on the return)
  • Enter the company's name and the amount you were paid.  Select Code G for the Reason Code
  • Answer "No" for "Have you filed Form SS-8""