Tax Return Alert: Changes In Reporting Rules & Forms (January 23, 2019)
What's new for the 2019 tax-return season
Tax-return reporting has significantly changed for the 2019 tax-return season. While the IRS condensed Form 1040 to just 23 lines (previously 73 lines), it also created an additional six new schedules that funnel information onto it. The way you report capital gains and the alternative minimum tax (AMT) has changed too. Meanwhile, tax reform altered the income-tax rates and brackets. These two major groups of changes are explained by an article and FAQ at myStockOptions. To prevent costly mistakes with reporting income from equity compensation or sales of company shares, you must understand the changes before you prepare your tax return.
How to report sales of company shares on your tax return
If you sold in 2018 any shares that you acquired from equity compensation or an ESPP, you will need to report the sale on your upcoming IRS Form 1040 tax return. A special section of FAQs in the myStockOptions Tax Center (Reporting Company Stock Sales) explains what you must know to avoid expensive mistakes and unwanted IRS attention. In these FAQs, our famous annotated diagrams of Form 8949 and Schedule D help you make sense of the reporting rules and show exactly how you report these transactions on your tax return. Other FAQs explain the biggest tax-return mistakes to avoid with stock options, restricted stock/RSUs, employee stock purchase plans, and stock appreciation rights.
Making sense of Form W-2, Form 3922, and Form 3921
In January, companies send key information statements related to equity compensation. They are essential for completing your tax return. In the Tax Center, Form W-2 reporting is explained in a special section of FAQs with annotated diagrams. Form 3922 reports income from purchases in tax-qualified ESPPs, as explained by an article and FAQ. Form 3921 reports income from the exercise of incentive stock options (see the related article and FAQ).
Learning Center offers CE credits
Get an early start on your 2019 continuing 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.
Save the date: myStockOptions Financial-Planning Conference
Our annual national conference, Financial Planning for Public Company Executives & Directors, will be held on June 18, 2019 at the Hilton San Francisco Airport Bayfront. This is a very good location both for everyone in the San Fran/Silicon Valley area and for those flying in from all over the USA. Our conference is for financial advisors working with executives, directors, and high-net-worth employees at public and private companies, as well as others interested in these topics. The 2018 event was a big success, as our blog reported last year. Contact us (firstname.lastname@example.org) to be notified when registration starts at the early-bird discount rate.