Tax Changes & More Ahead: Updates At myStockOptions.com
Along with the momentous legislative developments stemming from the economic crisis, a slew of year-beginning and tax-season updates for 2009 have kept our editorial team busy during the past few weeks. These include:
Tax Changes Ahead Under President Obama
In addition to the ongoing 2008 tax rebate (discussed below), President Barack Obama is expected to oversee another stimulus package in the coming weeks. But what about tax changes in the longer term? Mr. Obama has said he wants to make the 2001 and 2003 income tax cuts permanent except for people with annual income over $250,000, who will almost certainly see a tax hike after the economy has improved:
Another major area of likely action in 2009 affecting stock compensation is the alternative minimum tax. During his campaign, President Obama said he wants to index the AMT income exemption amounts for inflation, and many members of Congress would like to reform or even repeal the AMT. For all the latest legislative developments relating to AMT, see the relevant FAQ.
2008 Stimulus Rebate Still Available In 2009
The Economic Stimulus Act of 2008 created a tax rebate last year for many people whose 2007 income, as reported on federal tax returns in 2008, qualified for it. However, you may not be aware that the rebate can be based on income from either 2007 or 2008. This has implications now for people with stock compensation:
Tax Return Season Is Coming: Prevent Mistakes You Can't Afford
Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more. Completely updated for 2009, annotated diagrams of Schedule D show you exactly how to report sales of company stock on your IRS Form 1040.