2/20    I exercised my options last year. According to the etrade form, the
        sale price was $25,600, the option price was $13,7500, and the total
        gain was $11,850. Of the total gain, etrade already calculated taxes,
        social security, state, etc, which came out to be $5077.73. So
        actually I only got back around $6700. Here is my question. Since
        I already got taxed, do I have to report a net earning of $6700?
        The etrade form says "W-2 Income: $11850.00". If I tell them that
        I made extra $11850, wouldn't I get taxed twice?
        \_ Etrade already withheld your taxes.  You should report it as a
           W-2 income.
        \_ The very first question is:  Are they NQ options or ISO?  The tax
           ramifications are different for the two.
        \_ I've never dealt with any stock options, but I think you're
           supposed to report the full 11k income, but also report the
           $5k you paid in taxes  So you won't get taxed twice, but the
           $5k you paid in taxes may be adjusted depending on how much your
           other income was.
           \_ Yeah, what he said.
           \_ Ok, so I had a temp job and I made about $3000. My total
                income last year was $11,850 + $3000. Approximately how
                much tax will I have to pay back/receive? I'm asking because
                this is such an insignificant amount (I'm taking a leave of
                absence) and I'm thinking of not reporting the $11850
                income at all. I know this is not right but I will do it
                if I can get away with it.                      -op
                \_ Don't be a dumbass. File and you will get most of
                   the $5k you already paid back as a refund. The IRS
                   already knows you made the $11k. Don't think you can
                   outclever them.
                   \_ Actually, if you only made $14,850 last year and no
                      one else can claim you as a dependent, you'll get
                      all of it back.  File.  You're only penalizing yourself
                      if you don't.
                      \_ how do you know this?
                         \_ etrade calculated your tax and withheld assuming
                            you have certain level of income.  Since you made
                            almost no extra income, you're in a lower tax
                            bracket for the year.  Don't know if you'd get
                            all of it back as above said, since taxes laws
                            for stock options may be differenct, you should
                            get at least some money back.  It's in your favor
                            to report it correctly and get what you deserve.
                            And as someone said above, etrade reports your
                            income directly to IRS, so don't try to "get
                            away with it."
                            \_ In addition, it looks like you might have been
                               taxed at the "old" rate of 28%. It was changed
                               to 15% at some point last year. You might be
                               owed money thanks to BushCo.
                               \_ Buy lots of fire extinguishers to help
                                  offset the closure of your local fire
                                  department due to lack of funding.
                    \_ Wrong. Why do people who have no idea what they
                       are talking about love to confidently state their
                       opinion on the motd? Check out one of the tax
                       calculators on the web. You will owe something
                       like $600 in total tax burden. If you have paid
                       $5000 already, you will get $4400 back.