ISO on W-2 not included in box 1?

[AZ-Tax]

Is it possible an Incentive Stock Option that appears in box 14 of W-2 as ISO, is not included in the amt in box 1 of W-2?

[joanmcq]

Possible; the gain on ISOs does not have to be reported on the W-2. But I haven't seen one where it is mentioned on the W-2, but is not included in box 1.

[JON]

Iso

Last year and this year I have seen something new in the handling of nonqualifing stock option plans. If for an example 1500 shares become available, the COMPANY not a broker will handle the gross up and retain the shares to cover that charge. They will provide the details. First they will figure the gross up and second they will subract the number of shares needed to cover the gross up. So instead of issuing 1500 shares they will state 125 shares were subtracted and we issued you 1375. The V appears in the gross up on the W-2(value of the 125), but no shares were issued and sold to cover the gross up.

[gman]

I have only seen it where it is included in wages.