UPDATES! Tax returns involving income from stock options or ESPPs can be confusing. This article explains common errors to avoid when reporting stock compensation and stock sales on your tax return, with specific guidance for stock options and ESPPs. For more tax-return insights, see the articles and FAQs in our Tax Center.
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.
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Understand the basic tax-reporting requirements of stock options. This article reviews what you need to report on your tax return.
Understand how and when different taxes apply to NQSOs. You need to consider taxes at exercise and at sale to put together a strategy that maximizes the value of your options.
If you sold in 2017 any shares that you acquired from equity compensation or an ESPP, you will need to report the sale on the federal tax return that you file in 2018. 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.
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.
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