Thank you for your reply.  The client did file the election with both, but he is insisting that his employer did not include the income in his W-2. I agree it is incorrect, but I thought I could just use the Employee stock worksheet to report the compensation income. The worksheet appears to allow that the restricted stock grant may not be included in the W-2 since it has a check box for that. It even indicates it will flow to Line 7. However, using this form generates the Capital gain worksheet and I can't override it. I didn't realize I had to use a Form 4852 to report it as compensation. Thanks for your help.