Support CenterHow do I report W2 box 12 code V in SureFire - Code V on box 12
🔍 How do I report W2 box 12 code V in SureFire - Code V on box 12
This guide explains what W2 box 12 code V means and how the amount should be reported based on the IRS instructions.
⚠️ Before You Begin
Make sure you understand what type of stock option your employee exercised:
- Nonstatutory stock option(s) (this is where code V applies)
- Statutory stock option (this is excluded from the code V reporting requirement)
📊 Reporting Requirements for Box 12 Code V
Step 1: Calculate the required amount (the “spread”)
Use this when you need to report the value associated with nonstatutory stock option(s).
Stock option(s): Show the spread (that is, the fair market value of stock over the exercise price of option(s) granted to your employee with respect to that stock) from your employee's (or former employee's) exercise of nonstatutory stock option(s).
Step 2: Enter the spread in the correct W2 boxes
Use this when you need to know where the spread amount goes on the W2.
- Include this amount in boxes 1, 3 (up to the social security wage base), and 5.
- Include this amount in box 14 if you are a railroad employer.
Step 3: Know what does NOT require this reporting
Use this when you need to confirm whether code V applies.
This reporting requirement does not apply to the exercise of a statutory stock option, or the sale or disposition of stock acquired pursuant to the exercise of a statutory stock option.
✅ Good to Know
For more information about the taxability of employee stock options, see Pub. 15-B.
📞 Still Need Help?
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Phone: 1-800-516-9442
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