Bruce Brumberg and Lynnette Khalfani
The 2016 tax season has the potential to be confusing if you sold stock in 2015. This article explains common errors to avoid when reporting stock sales on your tax return and provides helpful guidance on various other tax topics involving stock options and ESPPs.
Your company has granted you stock options. Now what? This article explains the essential facts that you must know to understand your stock options and make the most of them.
To make the most of nonqualified stock options (NQSOs), you must understand their taxation. Learn the tax basics of NQSOs in this video, which features clear and concise explanations by the editor-in-chief of myStockOptions.com. Running time: 2:58.
With expert insights from the editor-in-chief of myStockOptions.com, this video covers the essential aspects of employee stock options that you must know to make the most of them, including the key concepts of vesting, exercise, and the option term. Running time: 4:12.
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.
myStockOptions Tax Team
Learn the rules for reporting stock sales on your tax return, along with costly errors to avoid if the shares you sold came from stock options, restricted stock/RSUs, stock appreciation rights, or an employee stock purchase plan. Among other issues, you must understand your "cost basis" to avoid overpaying your taxes. Running time: 8:06.
Here's some advice for financial fitness: take stock of taxes before you exercise! When and how you exercise your stock options can have a major impact on how much tax and which taxes you'll pay.
Stock options aren't just for the folks on mahogany row any more. But turning stock options into the real green stuff takes some know-how. You need to know certain features of your grant to decide when to exercise your options and sell the stock.
Stock options are a major element of your long-term incentive compensation, offering tremendous potential to accumulate personal wealth. Given your stock options' complexity, it’s essential to develop a strategy to realize their full potential.
myStockOptions Editorial Team
If you sold in 2014 any shares that you acquired from equity compensation or an ESPP, you will need to report the sale on your federal tax return. Learn here what you must know to avoid expensive mistakes and unwanted IRS attention. Our annotated diagrams of Form 8949 and Schedule D
can help you make sense of the reporting rules.
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You should know the answers to the following questions. Understanding the topics involved will help you make the most of your stock options and prevent costly mistakes...
The full spread for a nonqualified stock option is included in your gross income for the year of exercise as ordinary income...
Capital gains tax applies on the amount of your gains above...
All exercises with an exercise date in 2015, and all restricted stock with a vesting date in 2015, will be included in 2015 taxes and on your W-2 for 2015, and will count...
Capital gain is income that arises from the sale of a capital asset. Gain from the sale of securities held for investment, such as shares acquired from stock compensation...
Yes. The spread at exercise of an NQSO is considered "wages" for the purposes of...
There is a federal tax (called FUTA) to help fund unemployment benefits. FUTA is imposed on...
Many states, along with some counties and cities, impose...
The gain from your nonqualified stock option exercise(s) is totaled on the W-2 with other income in the following boxes...
Your actual tax bracket may be higher or lower than the mandatory federal withholding rate. Whether your company can withhold more depends on...
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