NQSOs

Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)

Tom Davison and Liam Hurley
UPDATED! The time right after you have completed your tax return is ideal for 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.

Tax Strategies With Stock Options & Deferred Compensation

Andy Wagner
NEW! Having both nonqualified stock options and nonqualified deferred compensation gives you a tremendous amount of flexibility to optimize your financial planning and tax situation. In this article, I explain how I have used the two plans in concert with one another.

How Tax Rate Changes Impact Your Stock Grant Strategies (Part 1): Nonqualified Stock Options

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.

The Revised Form 1099-B & New Form 8949 For Reporting Stock Sales On Your Tax Return: How To Avoid Paying Too Much Tax

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.

Avoid Tax Return Mistakes With Stock Options & ESPPs:
What You Need To Know In 2012

Bruce Brumberg and Lynnette Khalfani
UPDATED! This tax return season has the potential to be more confusing than most if you sold stock last year. You must now file the new IRS Form 8949 along with the revised Schedule D. This change stems from the expansion of the information that brokers must report to you on IRS Form 1099-B. Read this article for tips on these and other crucial tax return topics.

How To Report Sales Of Company Stock On Your Tax Return

The myStockOptions.com Tax Team
UPDATED FOR 2012! Learn how to report your sales of stock on the new Form 8949 and revised Schedule D of IRS Form 1040.

VIDEO! New Tax Return Forms & Reporting Rules For Stock Sales

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!

Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 1)

Mark Miller
For employees and executives, international travel and relocation are increasingly common. The taxation of "mobile employees" is always complex, and never more than with equity compensation. Part 1 introduces the key concepts and rules, including the sourcing and apportioning of income.

Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 2)

Mark Miller
International assignments or relocations can present attractive opportunities for career advancement. However, the taxation of equity compensation for mobile employees raises complex issues. Part 2 looks at specific scenarios, withholding taxes, and tax equalization.

How The Bush Tax Cuts Still Affect Your Planning For Stock Options, Restricted Stock, And ESPPs

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.

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How is the spread at exercise of an NQSO taxed for federal income-tax purposes?

The full spread for a nonqualified stock option is included in your gross income for the year of exercise as ordinary income...

For NQSOs or SARs exercised on the last business day of 2011, or for restricted stock that vests on that day, is the income taxable in 2011 or 2012?

All exercises with an exercise date in 2011, and all restricted stock with a vesting date in 2011, will be included in 2011 taxes and on your W-2 for 2011, and will count...

When I hold NQSO shares after exercise, what tax applies when I later sell the stock?

Capital gains tax applies on the amount of your gains above...

UPDATED! What is "capital gain"? Have recent tax laws changed the capital gains tax rates?

"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...

UPDATED! Is the spread at exercise of a nonqualified stock option subject to Social Security taxes?

Yes. The spread at exercise of an NQSO is "wages" for purposes of...

Is the exercise spread of NQSOs subject to federal unemployment taxes?

There is a federal tax (called FUTA) to help fund unemployment benefits. FUTA is imposed on...

Is the spread at exercise of a nonqualified stock option subject to state and local taxes?

Many states, along with some counties and cities, impose...

May I have my employer withhold more taxes upon my exercise of an NQSO than the minimum required amount?

Your actual tax bracket may be higher or lower than the mandatory federal withholding rate. Whether your company can withhold more depends on...

Can I deduct the state tax that was withheld from my NQSO exercise?

Generally, state and local income taxes are an itemized deduction on your...

NEW! What is backup withholding? How do I prevent it or recover it?

Backup withholding is a form of tax withholding on income from stock sales, along with interest income, dividends, or other types of payments that are reported on Form 1099. Your brokerage firm is required to make backup withholding if you are...

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