Stanley Trotta with Robert Gordon
NEW! You believe a tax hike is on the horizon. Should you take action with your stock options and company stock now or wait until the new rates apply? This article series analyzes the decision. Part 1 looks at nonqualified stock options and restricted stock.
The myStockOptions.com Tax Team
UPDATED FOR 2009! Learn how to report your sales of company stock on Schedule D of IRS Form 1040. Our comprehensive guide to Schedule D reporting covers sales of stock from nonqualified stock options, incentive stock options, restricted stock, restricted stock units, performance shares, employee stock purchase plans, and stock appreciation rights.
Martin Nissenbaum
Whether you complete your own tax return, want to review what your tax preparer did, or want to check what your software produced, it's important to understand basic reporting requirements of stock options. Let's review what, if anything, you need to report on your tax return.
Bruce Brumberg and Lynnette Khalfani
UPDATED! Tax-filing season can be onerous. If you're puzzled by a 1099-B form or don't quite know how and where to report gains and losses with stock options or ESPPs, this article is for you.
Tom Davison and Liam Hurley
Right after you have completed your taxes is a great time to do your big-picture financial planning. You can more accurately project your income and likely tax situation for the remainder of this year and the next, including AMT risk and capital-loss carry-forwards, to develop your strategy. At the end of the year, review your analysis and strategy again.
Mark Miller
For employees and executives, international travel and relocation are increasingly common. Taxation for "mobile employees" is always complex, and never more than with equity compensation. This article explains the key rules in cross-border situations.
Tom Davison
UPDATED! Even under the new president, the Bush administration's 2003 tax cuts and later extensions will continue to affect tax strategies for NQSOs, ISOs, and restricted stock. Unless these tax laws change sooner, many of them will persist through 2010.
Marilyn Renninger
UPDATED! 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.
Marilyn Renninger
You're ready to delve deeper into 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.
Internal Revenue Service
This IRS publication explains the tax treatment of many kinds of income, including that from NQSOs, ISOs, and restricted stock/RSUs.
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The full spread 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...
Yes. The spread at exercise of an NQSO is "wages" for purposes of...
Yes. There is a federal tax...
Many states, along with some counties and cities, impose...
Whether you can withhold more or not, the mandatory federal withholding rate...
Generally, state and local income taxes are an itemized deduction on your...
At a minimum, when you exercise your stock options, your company will withhold taxes at the required federal withholding rate for supplemental income. However, depending on your income, this minimum withholding may not be enough. If so, you will need to...
To calculate the taxable income at exercise, your company subtracts your exercise price from the fair market value (FMV) of the stock at exercise. Approaches to this FMV calculation depend on...
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...
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