How do I record income from exercise of an employee stock option?

Bill Ferguson
Bill Ferguson Quicken Windows Subscription ✭✭
I have stock options from my employer.  I created an account called Employee Stock Options and recorded each option grant in the account.  Quicken created the vesting schedule correctly. 

When I enter a cashless exercise of an option, Quicken accounts for me purchasing the shares at the option price, selling them at the market price, and subtracts the commission that I pay.  The Quicken account generates 3 line entries, for Exercise, Bought, and Sold.  The cash amount in the Quicken option account increases by the net that I receive from the options.

What I can't figure out is how to get this net income to show up on my income tax planner.  I typically enter a transfer transaction moving the money from the option account to my checking account, but that doesn't let me record any income.

What am I missing when I exercise an option?

Best Answer

  • Bill Ferguson
    Bill Ferguson Quicken Windows Subscription ✭✭
    Answer ✓
    Never mind.  I went to the Tax Planner, reset all the figures, and my stock options net income showed up as "Wages & Salaries - Self (Other).

Answers

  • Bill Ferguson
    Bill Ferguson Quicken Windows Subscription ✭✭
    Answer ✓
    Never mind.  I went to the Tax Planner, reset all the figures, and my stock options net income showed up as "Wages & Salaries - Self (Other).
This discussion has been closed.