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.

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!

Tax Season 2020: What You Need To Know About New Reporting Rules

Ready or not, tax-return reporting has changed yet again for the 2020 tax season. Prepare yourself with this article. Our editorial team presents the key points you need to know for your federal tax return if you had income in 2019 from stock compensation.
Restricted Stock Tax Returns

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

Tax returns involving income from restricted stock and restricted stock units (RSUs) can be confusing. The potential for mistakes has been increased by recent changes in IRS reporting rules. This article explains errors to avoid when reporting stock compensation and stock sales.
Restricted Stock Tax Returns

How To Report Sales Of Company Stock On Your Tax Return

Form 8949 and Sch. D diagrams! If you sold in 2019 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 2020. 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

Puzzled by your Form W-2, 1099-B, 3921, or 3922? Need to report sales of stock on Form 8949 and Schedule D? Tax returns involving income from stock options or ESPPs can be confusing. Recent changes in IRS reporting rules haven't helped. This article explains errors and nasty surprises to avoid.
NQSO Tax Returns

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

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

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...
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SAR Tax Returns

UPDATES! If I file an extension to complete my tax return after the IRS deadline, are there any mistakes I should avoid that involve stock compensation income? This is premium content

In any tax year, stock compensation income, such as from an NQSO exercise, an ISO or ESPP disqualifying disposition, or the vesting of restricted stock, can raise your income tax and make your return complex. Mistakes include not paying taxes owed with...
Tax Changes UPDATES!

UPDATES! What is capital gain and capital loss? What are the tax rates on capital gains?

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

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...
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.
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