Tax-Return Alert: Changes In Reporting Rules & Forms (Jan. 22, 2020)
As tax-return season approaches, this alert highlights the fully updated Tax Center at myStockOptions, including our popular content on reporting sales of company shares that features annotated diagrams of IRS forms. The alert also covers other recent developments at myStockOptions. See also a full list of our new and recently updated content.
Ready or not, tax-return reporting has changed yet again for the 2020 tax season, including the way you report capital gains from stock sales and the alternative minimum tax (AMT). For employees with 2019 income from equity compensation or sales of company shares, an article and FAQ in the Tax Center at myStockOptions explain the changes and what you need to know to prevent costly mistakes.
If you sold in 2019 any shares that you acquired from equity compensation or an ESPP, you need to report the sale on your tax return. Even if you sold the shares immediately at vesting, exercise, or purchase for no additional gain, you still have a reportable sale. In this section of the Tax Center at myStockOptions, learn what you must know to avoid expensive mistakes and unwanted IRS attention. Our famous, popular annotated diagrams of Form 8949 and Schedule D can help you make sense of the reporting rules.
IRS Form W-4 determines how much federal withholding tax will be deducted from your paycheck. Some companies use Form W-4 for withholding on income from nonqualified stock options and restricted stock/RSUs. In 2020, the IRS introduced a revised Form W-4 that better aligns with the Tax Cuts and Jobs Act (TCJA), which eliminated allowances and exemptions. However, it may be confusing for those familiar with the prior version. A new FAQ at myStockOptions explains how to use the modified Form W-4 for withholding on income you receive from equity compensation.
While tax-return season looms, meaning you will soon have to focus on reporting your 2019 income, you should also remember your basic tax planning for 2020. At the start of each year, many key numbers in tax-law provisions are adjusted for inflation. It can be hard to spot those that matter to you. The newest commentary in the myStockOptions Blog explains the top three sets of tax figures that highly compensated employees should know.
If you own RSUs, you need to plan for what you will do when the shares vest. Whether you hold or sell, being prepared will help you be proactive instead of reactive and make the most of the opportunity RSU grants provide. At myStockOptions, a new article by financial advisor Daniel Zajac can help you decide on a strategy to make the right moves for your situation.
Keep up your continuing professional education! In our Learning Center, myStockOptions has six courses and exams offering CE credits for several professional designations:
- 30 continuing-education credits for Certified Equity Professionals (CEPs): 100% of the total requirement
- 15 continuing-education credits for Certified Financial Planners (CFPs): 50% of the total requirement
- 15 continuing-education credits for Certified Private Wealth Advisors (CPWAs) and Certified Investment Management Analysts (CIMAs): 37.5% of the total requirement
- Chartered Financial Analysts (CFAs) and Certified Public Accountants (CPAs) are encouraged to take our courses and exams and include them, if possible, when they self-document their continuing professional education
Each course of study features podcasts, articles, and FAQs from myStockOptions. They are woven into a dynamic, interactive learning tool that teaches the topics in a memorable way. The answer key for each exam also links to relevant content on the site for further reading and learning.
myStockOptions 2020 Advisor Conference: Save The Date!
The 2020 myStockOptions conference, Financial Planning for Public Company Executives & Key Employees, will be held on June 15 and 16 at the Hilton San Francisco Airport Bayfront. The conference is for financial advisors working with executives, directors, and highly compensated employees at public and private companies, as well as others interested in those topics. The event will start on the afternoon of June 15 with an advisor boot camp on equity comp. A full day of conference sessions with expert speakers will follow on June 16. Please contact us (firstname.lastname@example.org) to be notified when registration starts at the early-bird discount rate. Our conference is recommended in The 20 Best Conferences For Financial Advisors To Choose From In 2020 by financial-planning thought leader Michael Kitces!