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Level 1
April 9, 2024
Question

ISO disposals

  • April 9, 2024
  • 1 reply
  • 4 views

This is my first time working with ISO disposals. My client's W-2 has the amount reported both in their wages and on box 11. As a result the amount is flowing to Schedule 1 Other income. It appears to me that it is being taxes twice. How do I adjust that?

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1 reply

dascpa
Level 11
April 9, 2024

ISO "disposal" is not typically a term used. Box 11 is a distribution from Sec 457 and other nonqualified plans.  Be careful that you don't have both qualified in Box 1 and nonqualified in Box 11.

A TurboTax post I found.

The IRS did change reporting requirements for 2022. It is being correctly reported on Schedule 1, Line 8t and Form 1040, Line 8. Here's more info on Non-Qualified Pension Reporting.