Overview › Area
Wages & stock compensation
Two employers, RSUs, ESPP and an ISO exercise.
Preparer Priya Raman · due 2026-03-27
Reviewer Daniel Ortiz · due 2026-04-08
Partner Helen Strand
Time 0 of 3.0 h budget
Ngozi had two employers. Corvane Systems (to 05/16, California) paid 104,600 in box 1 — including 38,200 of RSUs that vested in February and May and a 675 ESPP disqualifying disposition.
Halvorsen Data (from 06/02, remote from Sacramento until the move) paid 107,800. Halvorsen's W-2 arrived twice (a PDF and a phone photo, D10) — counted once.
Total wages 212,400; federal withholding 25,400. Two employers withheld social security on more than the wage base, so 3,342 comes back as a credit.
In July she exercised 1,000 ISOs at 12.00 when they were worth 52.00 and still holds them: no regular income, but an AMT preference of 40,000 that drives AMT of 3,871 and a minimum tax credit into 2026.
W-2s side by side
| Box | Corvane (D08) | Halvorsen (D09) | Halvorsen photo (D10) |
|---|---|---|---|
| box1 | 104,600 | 107,800 | 107,800 93% |
| box2 | 15,800 | 9,600 | 9,600 |
| box3 | 112,000 | 118,000 | 118,000 |
| box4 | 6,944 | 7,316 | 7,316 |
| box5 | 112,000 | 118,000 | 118,000 |
| box6 | 1,624 | 1,711 | 1,711 |
| box10 | 0 | 5,000 | 5,000 |
| box12_W | 2,500 | 3,500 | 3,500 |
| box16 | 107,100 | 111,300 | 111,300 91% |
| box17 | 8,950 | 4,180 | 4,180 |
Box 16 (California wages) on Halvorsen's W-2 is the full year: payroll kept California as the work state through 09/30 (see California area).
Checks that don't trust the engine (4)
W2-DISTINCT · Wages & stock compensation
Each W-2 counted once
Agrees
2 distinct W-2s; D09, D10 are one form. Box 1 total 212,400 agrees with line 1a.
Engine 212,400 · recomputed 212,400
How: Grouped every W-2 image by employer EIN + boxes 1 and 2; summed box 1 of distinct forms.
EXCESS-SS · Wages & stock compensation
Excess social security recomputed
Agrees
Excess 3,342.
Engine 3,342 · recomputed 3,342
How: Box 4 total 14,260.00 less 6.2% x wage base 176,100 = 10,918.20.
ISO-AMT · Wages & stock compensation
ISO bargain element recomputed from Form 3921
Agrees
AMT preference 40,000.
Engine 40,000 · recomputed 40,000
How: (52.00 FMV - 12.00 exercise) x 1,000 shares; client confirms shares still held (qa-06).
ESPP · Wages & stock compensation
ESPP disqualifying disposition
Agrees
Ordinary income 675.00 = W-2 box 14 ESPP (already in box 1); basis 4,500.00 = supplemental statement (D11) and lot N2 adjustment code B.
Engine 675 · recomputed 675
How: Form 3922 (D13): (30.00 FMV at purchase - 25.50 paid) x 150 sh; sold 03/10/2025, within two years of the offering date - disqualifying.
Authority: IRC 421(b), 423; Treas. Reg. 1.423-2(k)
Documents (7)
| D08 | 2025 Form W-2 - Corvane Systems, Inc. (Ngozi Okafor)
received 2026-01-29 · client · extracted |
landed on the return | F1040.1a, F1040.25a, F540NR.71, F8889.9 +6 | |
| D09 | 2025 Form W-2 - Halvorsen Data LLC (Ngozi Okafor)
received 2026-02-02 · client · extracted |
landed on the return | F1040.1a, F1040.25a, F2441.12, F540NR.71 +7 | |
| D10 | Form W-2 - Halvorsen Data LLC (phone photo)
received 2026-02-09 · client · extracted |
duplicate - counted once D10 is a second image of the Halvorsen W-2 (D09); counted once. |
||
| D11 | Corvane stock plan supplemental tax statement 2025
received 2026-02-14 · client · extracted |
landed on the return | F8949.A.N2 | |
| D12 | Form 3921 - exercise of incentive stock option (Corvane)
received 2026-02-14 · client · extracted |
landed on the return | F6251.2i | |
| D13 | Form 3922 - ESPP transfer (Corvane)
received 2026-02-14 · client · extracted |
evidence for a check Not cited by the engine; used as evidence by ESPP |
||
| D73 | Halvorsen Data paystub - pay date 07/18/2025 (Ngozi Okafor)
received 2026-03-27 · client · extracted |
evidence for a check Not cited by the engine; used as evidence by CA-WAGE-SOURCE |
Every line in this area (11)
Show all 11 lines
| F1040.1a | Wages (Forms W-2, box 1) | 212,400 | |
| F1040.1z | Total wages | 212,400 | |
| F6251.2i | Incentive stock options | 40,000 | |
| F8959.1 | Medicare wages | 230,000 | |
| F8959.5 | Threshold | 250,000 | |
| F8959.7 | Additional Medicare tax on wages | 0 | |
| F8959.8 | Self-employment income | 75,592 | |
| F8959.13 | Additional Medicare tax on self-employment income | 500 | |
| F8959.18 | Total additional Medicare tax | 500 | |
| F8959.22 | Additional Medicare tax withheld | 0 | |
| Sch3.11 | Excess social security tax withheld (two employers) | 3,342 |
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