in w-2 added stock options - tons of income now

[WITAXLADY]

so every year - employee gets stocks,,, added into W-2.. 

so value is $50,000 basis is $20,000 so gain is $30,000  and he sells it - so that is taxable income even tho it was in W-2? 

seems like a lot of money already taxed? Is this how it is treated - first one and probably will never see again- tryin to get tax implication down. 

Thank you

[Lion EA]

If it showed up in his W-2, he already paid ordinary income tax rates on it, and you add it to any out-of-pocket cost to get his basis.  Are you saying he paid $20,000 cash plus $30,000 was on his W-2?  Then, his basis is $50,000.

[WITAXLADY]

i think so.. and the paper shows $50,000 but I did not understand what is was showing - that makes more sense - except -I thought he got it as part of a bonus - 

so it was worth $50,000 but he did not get that much at all!