Puzzled by what to do with your W-2, Form 1099-B, or Forms 3921 and 3922? Don't quite know how and where to report sales of company stock on Form 8949 and Schedule D? Tax returns involving income from stock options or ESPPs can be confusing. The potential for mistakes is increased by new IRS reporting forms and rules for the 2019 tax season. This article explains errors to avoid when reporting stock compensation and stock sales on your tax return.
Ready or not, tax-return reporting has significantly changed for the 2019 tax-return season. To prevent mistakes when reporting income from equity compensation or sales of company shares, you must understand these changes, explained in this article, before you prepare your tax return.
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Form 8949 and Sch. D diagrams! If you sold in 2018 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 2019. 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.
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: 8:05.
Learn how to prevent costly tax return mistakes with this animated presentation on IRS Form 1099-B, IRS Form 8949, and Schedule D.
UPDATES! 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.
This PowerPoint presentation explains the top 10 most frequently occurring errors involving stock compensation on tax returns and answers common questions about related tax topics.