Option (incentive stock option plan)

Report your incentive stock options and any stock acquired through an incentive stock option plan in Part 2.  In addition, report your participation in an incentive stock option plan in Part 3 (see Part 3 of this guide for details).





Income Type

Income Amount


Widgets Unlimited, vested stock options


$15,001 - $50,000


None (or less than $201)


Widgets Unlimited, stock options (value not readily ascertainable):  740 unvested shares, strike $19, vest 2/2019, exp. 1/2023




None (or less than $201)

For You

Part 2

Reporting Stock Options

Report a stock option if the value of the option was more than $1,000 at the end of the reporting period or if you received more than $200 in income during the reporting period.

Description:  Provide the exact name of the stock for which the option was issued, write “stock option,” and indicate whether the option is vested.  In addition, for a privately held business, describe the line of business, unless you have already provided this information in another entry.

EIFSelect “N/A.”

Value:  If you are able to determine the value of your option, report the value by marking the appropriate category.  Keep in mind that the value of an option is not the same as the value of the stock for which it was issued.  In addition, a stock option may have reportable value even if the option is currently “underwater” (i.e., the strike price is above the market price), depending on how much time remains to exercise the option.  The human resources office of the company that issued the options may be able to provide a valuation.  If the company has not provided you with this information, OGE will accept either of the following methods of valuation:

(A) If the option is “underwater” or if the value of the option is otherwise difficult to determine, write “value not readily ascertainable” in the “Description” field and provide the following additional information: (1) the number of shares of the stock for which the option was issued; (2) the strike price; (3) the expiration date; and (4) the date on which the option will vest, if the option is unvested.

(B) Alternatively, you may use any commonly accepted formula to calculate the value of your options (e.g., the Black-Scholes pricing model).

Income Type:  Specify the type(s) of income if the total amount of income during the reporting period exceeded $200.

Income Amount:  Select the category corresponding to the total amount of income received during the reporting period.  Options obtained through employment (e.g., incentive stock options) normally do not produce income, which means that most filers select “None (or less than $201).”

Reporting Stock Acquired by Exercising Stock Options

Report any stock that you acquired as a separate line entry, using the standard instructions for stock.

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