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Tax Center

Tax Center

As featured in PLANSPONSOR, Accounting Today, and CPA Practice Advisor, the myStockOptions Tax Center explains the tax withholding, reporting, and filing for stock options, restricted stock/RSUs, performance shares, ESPPs, and SARs.

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Want to know more? Listen to our podcast on tax return tips and how to avoid reporting mistakes!

Check out our podcast and video on the tax forms and reporting rules for stock sales.

Selected Articles

Tax Changes UPDATES!

UPDATES! Tax Season 2020: What You Need To Know About New Reporting Rules This is premium content

The myStockOptions Editorial Team
Ready or not, tax-return reporting has changed yet again for the 2020 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.
Restricted Stock Tax Returns

Restricted Stock & RSUs: 10 Mistakes To Avoid On Your Tax Return This is premium content

The myStockOptions.com Tax Team
Tax returns involving income from restricted stock and restricted stock units (RSUs) 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.
Restricted Stock Tax Returns

How To Report Sales Of Company Stock On Your Tax Return

myStockOptions Editorial Team
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.
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ESPP Tax Returns

12 Tax-Return Mistakes To Avoid With Stock Options And ESPPs This is premium content

Bruce Brumberg and Lynnette Khalfani
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.
NQSO Tax Returns

NQSOs: Tax-Return Tips And Traps This is premium content

myStockOptions Editorial Team & Contributors
Understand the basic tax-reporting requirements of stock options. This article reviews what you need to report on your tax return.
Tax Changes UPDATES!

6 Ways Tax Reform Affects Your Stock Compensation And Financial Planning

The myStockOptions Editorial Team
Podcast included! The Tax Cuts & Jobs Act has provisions that affect stock compensation, whether in financial planning or in stock plan administration. This article details six with an impact on the taxation of stock compensation or holdings of company shares.
This is simply a selection of the many articles in this section.
Use the navigation to the left to explore all of the categories in this section.

Selected FAQs

Restricted Stock Basics

Do you have a brief overview of the tax treatment for stock options, restricted stock, RSUs, and ESPPs? This is premium content

The table in this FAQ shows the types of taxes, when they are triggered, and the tax withholding (if any) for various forms of equity compensation granted in the United States. For details, examples, and illustrations...
Restricted Stock Basics

When and how is a grant of restricted stock or RSUs taxed?

The timing of taxation is different than that of stock options. You pay tax at the time the restrictions on the stock lapse. This occurs when...
Tax Changes UPDATES!

UPDATES! What's new for the 2020 tax-return season?

For employees who received income from stock compensation or sales of company stock in 2019, there are major changes in IRS forms and reporting to be aware of for 2019 tax returns filed in 2020...
Show More Selected FAQs
Tax Changes UPDATES!

UPDATES! What are capital gains and capital losses? What are the capital gains tax rates?

Capital gain is income that arises from the sale of a capital asset. Gain from the sale of securities held for investment, such as shares acquired from stock compensation...
NQSO Basics

When are nonqualified stock options taxed?

You are taxed when you exercise nonqualified stock options and thus acquire the underlying shares of your company's stock. The difference between the market price of the stock at exercise and your exercise price is...
ESPP Basics

How am I taxed if I participate in a tax-qualified (Section 423) employee stock purchase plan?

You are taxed only at sale, not when the shares are purchased. However, the rules for ESPP taxation are more confusing...
NQSO Basics

What happens with taxes on stock options if I live or work in different states during the period between grant and exercise? This is premium content

Generally, each state you live in determines what income is taxable and when. For administrative ease, many companies...
NQSO Basics

How is capital gain calculated?

The amount of your capital gain is the difference between your sales price and your tax basis in the stock. However, with stock from equity compensation, your tax basis can be harder to determine. It is...
ESPP Basics

For how long must I hold shares purchased under a Section 423 ESPP to receive favorable tax treatment?

To get favorable long-term capital gains treatment...
ESPP Basics

What is an ESPP disqualifying disposition, what can cause it, and why does my company care? This is premium content

A disqualifying disposition occurs when you sell or otherwise...
ESPP Basics

How am I taxed if I participate in a nonqualified employee stock purchase plan?

"Not qualified" means that your company's employee stock purchase plan (ESPP) does not meet the requirements under Section 423 of the Internal Revenue Code. Its mechanics and procedures may be the same as a tax-qualified ESPP, but the favorable tax treatment does not...
This is simply a selection of the many FAQs in this section.
Use the navigation to the left to explore all of the categories in this section.