Income question

[Anonymous]

Every year I receive a non qualified stock bonus, of course it's value depends on te current market price at the time I get the bonus, this bonus is worth about 10k give or take, but it's a n estimate, can I include this in my annual income?

[Anonymous]

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@Anonymous wrote:

Every year I receive a non qualified stock bonus, of course it's value depends on te current market price at the time I get the bonus, this bonus is worth about 10k give or take, but it's a n estimate, can I include this in my annual income?

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If it shows on your income tax return, it's income so go ahead and include it if you can document it with tax returns for a few years if POI is ever requested.

[masscredit]

I would. They can decide if it qualifies if your income is ever questioned. 

[Anonymous]

I would include it

[Anonymous]

Thank you all, so my mine concern is that these are non-qualified stocks, meaning it has income and deferred tax benefits, so this income does not make it to my W2 until I decide to exercise  which is not going to be anytime soon since I want the shares to growth.

[tacpoly]

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@Anonymous wrote:

Every year I receive a non qualified stock bonus, of course it's value depends on te current market price at the time I get the bonus, this bonus is worth about 10k give or take, but it's a n estimate, can I include this in my annual income?

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These are non-qualified stock *options*, correct?  Strictly speaking, it is not income until it is exercised and therefore cannot be counted as such before exercising. Your company could disappear and it would be worth nothing.

But then I'm not a big stickler on income reporting accuracy to credit card companies anyway.  For loans/mortgages and IRS, I report to the dollar, but not for CC (I always report much lower). 

[Anonymous]

Yes they are options, ans yes you are correct, although it is very unlikely that the company dissapears (fortune 500 retailer) but it could happen,  so you are right it's probably best not to incluede it, I was wondering what people usually do.

[disdreamin]

Unless I could prove it (W2, 1099, etc) I wouldn't claim it.