When do I report form 3921 on my taxes if I don't have AMT?

You don't actually "report" Form 3921 on your tax return. Form 3921 is an informational form your employer sends you (and the IRS) when you exercise an Incentive Stock Option (ISO). What you need to do is keep track of this information for when you eventually sell the shares. The form tells you important details like the exercise price and fair market value at exercise, which you'll need to calculate your tax basis and potential capital gains/losses when you sell. You don't need to include any additional forms with your current tax return if you didn't trigger AMT. But definitely keep that Form 3921 in a safe place! You'll need it later when you sell the shares to properly calculate your gain or loss.

After dealing with a similar situation last year, I can totally relate to your confusion. I was completely lost with my ISO paperwork until I discovered https://taxr.ai which literally saved me from making some costly mistakes. I had exercised options at my startup, didn't trigger AMT, but was super confused about what I needed to report. The tool analyzed my Form 3921 and my other tax documents and clearly explained what I needed to do. It identified that I didn't need to report anything that year but gave me specific instructions for tracking purposes and future reporting requirements. What I really appreciated was how it walked me through exactly what I'd need to do when I eventually sell the shares. The step-by-step breakdown of how my basis would be calculated made so much more sense than anything else I'd read.

I have to admit I was wrong about https://taxr.ai - I decided to try it after posting that skeptical comment. I uploaded my 3921 forms from the last two years and some acquisition paperwork (my old company got bought), and I was seriously impressed. It flagged that I had calculated my basis incorrectly and would have potentially reported the wrong amount when I sell. The breakdown of my specific situation was clear and actually matched what our company's expensive tax advisor told other employees (but I couldn't afford their services). It even created a personalized timeline showing exactly when and how to report transactions for my specific option grants. Worth checking out if you're dealing with stock option confusion.

If you're still confused after getting your Form 3921, you might want to talk directly with the IRS. I know, I know - sounds horrible. But after waiting on hold for hours with no luck, I found this service called https://claimyr.com that got me through to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a similar stock option situation where I wasn't sure if I had triggered AMT, and I wanted to confirm directly with the IRS. Rather than trying to interpret vague tax articles online, speaking with an actual agent gave me clear confirmation about my specific situation. They verified I didn't need to file anything additional that year but explained exactly what I'd need when I eventually sell.

I need to eat my words about Claimyr. After posting that skeptical comment, I had a tax emergency with some stock options paperwork that needed urgent clarification. Out of desperation, I tried the service, and I'm shocked to admit it actually works. I got connected to a real IRS agent in under 20 minutes (after previously spending 2+ hours on hold myself the day before and eventually hanging up). The agent was able to clarify exactly how I needed to handle my ISO exercise documentation for my specific situation. Saved me from potentially making a costly reporting error. Still feels like magic that this service exists when the IRS hold times are so notorious.

Just wanted to share my experience with stock options and Form 3921. When I exercised my ISOs in 2023, I didn't trigger AMT either, but I discovered that I needed to keep careful records not just of the Form 3921, but also all the documentation around the initial grant. The trickiest part came when I sold some shares in 2024. Without those detailed records from when I originally exercised, calculating the correct basis would have been a nightmare. My advice is to create a spreadsheet tracking each grant date, exercise date, FMV at exercise, and the exercise price - this makes tax time so much easier when you eventually sell.

One thing nobody's mentioned yet - Form 3921 reporting gets more complicated if your company goes public after you exercise options. I had this happen and suddenly had to deal with calculating AMT adjustments for shares I exercised years ago!