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CORRECTED OMB No. 15452129 1 Date option granted Form 3921 2 Date option exercised (Rev. August 2013) TRANSFEROR IS federal identification number EMPLOYEES identification number 3 Exercise price per

How to fill out form 3921 - tax

To fill out form 3921 - tax, follow these steps:

1. Start by obtaining a copy of form 3921 from the Internal Revenue Service (IRS) website or your tax software provider. This form is used to report the exercise of incentive stock options (ISOs).
2. Begin by entering your personal information in the designated fields. This includes your name, address, and Social Security number.
3. Next, you need to provide the employer's information. Input the name, address, and employer identification number (EIN) of the company that granted you the incentive stock options.
4. Move on to the box labeled "Date of Grant" and enter the date when the stock options were granted to you.
5. In the field marked "Date of Exercise," specify the date when you exercised the stock options and obtained the underlying stock.
6. Proceed to report the total number of shares acquired through exercising the ISOs in the "Number of Shares" box.
7. Determine the exercise price per share and record it in the designated field.
8. Calculate the fair market value (FMV) of the shares on the date of exercise. This value should be reported in the "Fair Market Value per Share on Exercise Date" box.
9. Next, subtract the exercise price per share from the FMV per share to determine the spread. Enter this value in the "Spread" box.
10. Now, you need to calculate the compensation element. Multiply the spread by the number of shares and insert the result in the "Compensation Element" field.
11. If you sold any of the acquired shares during the same year, indicate the proceeds from the sale in the "Proceeds from Disposition" box.
12. At this point, you must calculate your gain or loss. Subtract the exercise price and any commissions or fees from the proceeds from disposition. Enter the resulting amount in the "Gain or Loss" field.

Who needs form 3921 - tax?

Form 3921 is required to be filled out by individuals who have exercised incentive stock options (ISOs) during the tax year. This form is used to report the exercise and subsequent disposition of ISOs to the IRS.

Typically, employees who received ISOs from their employer will need to file form 3921 if they exercised the options in the given tax year. It is essential to report this information accurately to ensure compliance with tax regulations.

For pdfFiller’s FAQs

What is form 3921 - tax?

Form 3921 is used to report the exercise of incentive stock options (ISOs) during the calendar year.

Who is required to file form 3921 - tax?

Corporations that grant ISOs to their employees are required to file Form 3921 with the IRS and provide a copy to the employee who exercised the options.

How to fill out form 3921 - tax?

Form 3921 must be completed with information about the company issuing the ISOs, the employee who exercised the options, and details of the stock options exercised.

What is the purpose of form 3921 - tax?

The purpose of Form 3921 is to report the exercise of ISOs and determine the tax consequences for both the employer and the employee.

What information must be reported on form 3921 - tax?

Form 3921 must include details such as the grant date, exercise date, fair market value of the stock on the exercise date, and the exercise price of the stock options.

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