Bruce Brumberg
NEW! The stock-sale information provided by brokers on IRS Form 1099-B has changed. Cost-basis reporting, both for your broker on Form 1099-B and for you on your tax return, is now more complex, confusing, and vulnerable to errors. This article explains the crucial facts you must know to avoid overpaying tax or attracting unwanted IRS attention.
Bruce Brumberg
If there's a way to make learning about tax forms fun, we'll try it. Watch and hear this animated presentation on the expanded IRS Form 1099-B, the new IRS Form 8949, and the revised Schedule D. Learn now to prevent costly tax return mistakes later!
Tom Davison
Even under President Barack Obama, the Bush administration's 2003 tax cuts and later extensions (now through 2012) continue to affect tax strategies for NQSOs, ISOs, and restricted stock.
Stanley Trotta with Robert Gordon
With tax increases possible in the future, now may be a good time to re-evaluate your current financial-planning strategy. Should you take action with stock options now or wait until new rates apply? Part 1 looks at nonqualified stock options.
Stanley Trotta with Robert Gordon
With tax increases in mind, now may be a good time to re-evaluate your current financial-planning strategy. Should you take action with stock compensation now or wait until new rates apply? Part 2 looks at restricted stock and restricted stock units.
Stanley Trotta with Robert Gordon
With tax increases in mind, now may be a good time to re-evaluate your current financial-planning strategy. Should you take action with stock options now or wait until new rates apply? Part 3 looks at incentive stock options.
Kaye A. Thomas
Special rules for old unused AMT credits, first available in 2007, were drastically revised for the tax years 2008 through 2012. This is the first of two articles on the refundable AMT credit, which provides a way for many people to use more AMT credits than they could under the regular rules.
Kaye A. Thomas
Special rules for old unused AMT credits, first available in 2007, were drastically revised for the tax years 2008 through 2012. This is the second of two articles on the refundable AMT credit, which provides a way for many people to use more AMT credits than they could under the regular rules.
Tom Davison
With the lower tax rate on dividends, let's look at the effects of dividends on your planning for stock options and restricted stock.
Tom Davison
The lower tax rate on dividends may change your stock option and restricted stock planning. Part 1 explained basic dividend rules. This article looks at dividend strategy.
CCH
This CCH Tax Briefing concisely summarizes the major provisions in the 2010 Tax Relief Act, including those which affect stock compensation.
Internal Revenue Service
This extensive IRS guide covers many topics related to reporting income and expenses from investments, including dividends (Chapter 1), capital gains (Chapter 4), and interest on loans (Chapter 3).
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For people who sold shares in 2011, major changes in tax reporting and filing are taking effect this tax season...
More information is now reported on this form than in past years. This may prove to be more helpful, but it also may be more confusing. Issued to you by your brokerage firm, IRS Form 1099-B is an important document that you must have to complete your tax return. Recent legislation has changed the form in significant ways that you must understand...
The new Form 8949 is where you now list the details of each stock sale on your tax return, while the revised Schedule D is where you now merely aggregate the column totals from Form 8949 to report your total long-term and short-term gains and losses. From our interpretation of the forms and their instructions, myStockOptions.com recommends the following reporting steps to avoid overpaying taxes...
Yes. The spread at exercise of an NQSO is "wages" for purposes of...
When you have more than one job in a year, each company must withhold Social Security tax without considering what the other company withholds. The result could be...
Restricted stock withholding is similar to withholding for most other forms of supplemental compensation. You can have different choices for paying taxes, or your company may automatically...
"Capital gain" is income that arises from the sale of a capital asset. Gain from the sale of shares acquired from option exercise or restricted stock vesting is...
Yes, substantially. In addition, fluctuations of income, which can be caused by stock compensation, are a red flag that can trigger an audit. According to research...
The holding period to determine whether a dividend is "qualified" and taxed at the lower 15% rate starts on the date after the option is exercised and the stock is held...
If you take out a margin loan from your brokerage firm, it can lend your shares to short sellers. If that stock pays a dividend while your shares are on loan, you will...
The traditional strategy with NQSOs recommends waiting till...
Maybe not. You are probably thinking that you can borrow money, such as with a margin loan, deduct this as an investment interest deduction, and net it against investment income...
Tax considerations alone should not drive the choice of what stock you sell. For example, if you are holding appreciated company stock from a nonqualified stock option (NQSO) exercise, you will be taxed on any capital gains when you sell it. The capital-loss carry-forward from last year's unused losses can offset these gains, making it less "taxing" to diversify your holdings...
No. Under the 2003 tax cut, qualified dividends are taxed at the same rates as long-term capital gains...
Not necessarily. Employers usually withhold federal income taxes at the rate used for supplemental wages...
Estimated-tax periods end on the last days of March, May, August, and December, with payments due by the 15th (or the next business day) of the following month. If you are paying estimated taxes, one strategy is that just after the start of an estimated-tax period you can...
You need to pay enough tax during the year through withholding or estimated tax payments to avoid penalties and interest. The tax that has to be paid includes any AMT attributable to the exercise of ISOs or any ordinary income from a disqualifying disposition. In these ISO situations, your employer does not...
To keep middle-income people from being unfairly hit by the alternative minimum tax, Congress has enacted temporary relief during each of the past few years. These include legislative "patches" to extend and increase the income exemption amounts that apply to the AMT...
The 2010 Tax Relief Act extended the 2010 tax rates through 2012. This FAQ presents eight related planning points for equity compensation...
The 2003 tax law has no provisions that deal directly with employee stock options or stock purchase plans. If your income goes up...
The Making Work Pay Credit was created by the American Recovery & Reinvestment Act of 2009. It was replaced in 2011 by a 2% reduction in the Social Security tax rate. This rate cut was part of the 2010 Tax Relief Act...
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