Alert: Tax Season 2021, Option Exercise Strategies, On-Demand Webinars, & More
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Ready or not, tax season cometh. While equity comp is very rewarding, it can complicate your tax return. Fortunately, the fully up-to-date Tax Center at myStockOptions is here to help.
This alert highlights recent additions and updates in the award-winning content of myStockOptions to help you maximize the value of equity comp and reduce tax mistakes. These include our popular FAQs in the Tax Center that illustrate how to report sales of shares acquired from equity comp on your tax return, featuring annotated diagrams of IRS forms. See also our FAQs with annotated diagrams showing how equity comp is reported on Form W-2. You can also review a full list of our new and recently updated content.
Ready or not, tax-return reporting has changed yet again for the 2021 tax season, including the way you report capital gains from stock sales and the alternative minimum tax (AMT). For employees with 2020 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. Another useful article focuses on getting your cost basis right to avoid overpaying your taxes.
If you sold in 2020 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 a special 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.
While tax-return season looms, meaning you will soon have to focus on reporting your 2020 income, you should also remember your basic tax planning for 2021. 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 employees should know.
So you have vested stock options. What should you do: exercise and hold, exercise and immediately sell, or wait to exercise? A recently updated FAQ at myStockOptions explores this decision process. Meanwhile, for incentive stock options (ISOs) in particular, many experts say that early in the year is the best time to exercise. Our new FAQ on this topic explains why that can be a good exercise window. Another FAQ explains what to do if you exercised ISOs, forgot to report the ISO exercise/hold on your tax return, and now realize you may owe AMT.
ON-DEMAND WEBINAR: Stock Compensation Bootcamp for Financial Advisors
Learn what you need to know about stock options, restricted stock, RSUs, and ESPPs to effectively serve clients, build wealth, and prevent costly mistakes. Whether you are new to stock comp or want to sharpen your knowledge, this webinar will provide practical info and insights to maximize your success. In our bootcamp webinar, all the essential topics are presented in just 100 minutes by Bruce Brumberg, Esq., the Editor-in-Chief and co-founder of myStockOptions.com and a Forbes.com contributor.
In this post-conference era, keep up your continuing professional education and earn needed CE credits at myStockOptions. In our Learning Center, myStockOptions has seven courses and exams offering CE credits for several professional designations:
- 35 CE credits for Certified Equity Professionals (CEPs): over 100% of the total requirement
- 21 CE credits for Certified Financial Planners (CFPs): 70% of the total requirement
- 21 CE credits for Certified Private Wealth Advisors (CPWAs) and Certified Investment Management Analysts (CIMAs): 52.5% 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.