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system
what is the correct way to report incentive stock options (iso) on federal taxes?
user
i'm assuming this was a cashless exercise because you had income show up on your w-2. when i had a similar situation, i did the following: if you made $50,000 in salary and $10,000 in stock options then your w-2 now says $60,000. you'll record that on your taxes just like it was regular income.  you'll also get a form that talks about your stock sale.   but remember, you bought and sold the stock within seconds.  your forms will probably look like this: bought stock: $10,000 sold stock: $10,000 + $50 commission total profit (loss): ($50) from the turbotax/irs view point, you lost $50 on the sale of the stock because you paid the commission, but the buy and sell prices were identical or nearly identical.
assistant