On Apr 8, 6:57 pm, bark...[at]yahoo.com wrote:

- quote -

No, I did some research and found that you do have to pay the
employer's and employee's portion of FICA. Roughly, I calculate this
to be between 9.1% and 15.3% additional tax. The lower rate applies
if your existing other W2 income is already 97500.

http://www.fairmark.com/execcomp/nqoexer.htm

<Quote
Non-employees

If you're not an employee of the company that granted the option,
withholding won't apply when you exercise it. The income should be
reported to you on Form 1099-MISC instead of Form W-2. Remember that
this is compensation for services. In general this income will be
subject to the self-employment tax as well as federal and state income
tax.

</Quote
So would report the income on Schedule C, pay the employer and
employee part of SS, etc.

If you wrote the income only on line 7 (wages), then you would also
fill out the form for paying the employee's portion of social security
ane medicare (form 8919). But the FICA tax here is half of the above
method.

http://www.irs.gov/pub/irs-pdf/f8919.pdf

But talk to an accountant to see if you can get away with reporting
the income on line 21 (Other Income). This way you don't have to pay
the FICA tax. I don't think it's doable though.


- quote -

No, that doesn't sound right. It wouldn't match what's in the IRS
records.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

This is a bit of a follow up on a previous post.

I exercised nonqualified stock options in 2007. I still own the
shares. Thanks to this group, I learned that the "benefit" from
exercising should be reported as income. If I don't have a W-2, (I've
contacted the company to no avail. I haven't worked for them for 9
years) do I just add that amount to my other W-2 income?

Since I'm using TurboTax, should I just create a w-2 with as much info
about the company as possible?

Thanks again, I realize these are busy days...

Mitch

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >