I exercised stock options in 2022 and the net income was reported on my W-2. It also being reported on Form 8949 and offsetting other losses. Is this correct?

Probably.  Without knowing all of the details regarding the type of option you exercised followed by the subsequent sale of the underlying stock, compensation income (compensation income associated with the option) is generally reported on a W-2.  A 1099-B is issued by the broker that effected the sale and any gains or losses are included on Form 8949.  Yes, a capital loss will offset capital gains, so if you see that on your Form 8949, that is proper tax reporting assuming the actual numbers are correct.  Sometimes, employees will need to adjust their cost basis and when cost basis is adjusted, gains and losses will be impacted.  

To better understand your tax situation, what type of stock option did you exercise and subsequently sell?  Was it a purchase through an Employee Stock Purchase Plan?  Or was it some other type of option?  It would also be helpful to know whether your option was part of a qualified plan or a non-qualified plan.  

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