Page 67 - Wages, Salaries and Other Earnings

Retirement Plan Contributions

Stock Options

 If you receive a nonstatutory option to buy or sell stock

or other property as payment for your services, you will
usually have income when you receive the option, when

you exercise the option (use it to buy or sell the stock or
other property), or when you sell or otherwise dispose of
the option.

 However, if your option is a statutory stock option, you
won’t have any income until you sell or exchange your

stock.
 Your employer can tell you which kind of option you hold.
For more information, see Pub. 525.