At a minimum, at the time of your SARs exercise your company will withhold taxes from the proceeds at the required federal withholding rate for supplemental income. However, depending on your income, this minimum withholding may not be enough. If so, you will need to...
Let's first review the tax rules and the W-2 reporting. The tax basis for...
The gain from your SARs exercise(s) is totaled on the W-2 with other income in the following boxes...
Whether you sell all the stock at exercise or hold the stock and later sell it, you need to complete Form 8949 and Schedule D for the year of your stock sale and file them with...
Major changes have occurred in tax-return reporting in recent years, making accurate tax-return reporting more complex and difficult...
Form 1099-B or the equivalent substitute statement is necessary for the accurate completion of your tax return. Five facts you must know about this reporting to avoid tax-return mistakes are...
When your W-2 income is added to the price you paid for the stock, this is your cost basis on your tax return. The table below presents the compensation portion of your tax basis for all types of stock grants and ESPPs...
If you sold shares during the calendar year, your brokerage firm will issue IRS Form 1099-B by mid-February of the following year. This is an important document that you must have to complete your tax return for the year of sale...
A number of tax law provisions and interpretations that may affect your stock grants occur in...
With approval from the board, and perhaps also shareholders, your company can modify outstanding grants in a way that is consistent with its stock plan. However, it should avoid tax pitfalls for you and the company, such as...
The income will be included in tax year 2022, even if you recognize it on the last business day of the year. However, you should confirm...
Former employees' transactions, regardless of the reason for termination, follow the same withholding and reporting requirements that apply to...
Supplemental income, such as stock compensation, is subject to one of two flat rates that are linked to rates in the income tax brackets. When the income tax rates change, as they did with the...
When too much Social Security tax is withheld above the Social Security wage base during a calendar year, your recovery approach depends on whether...
Most companies base withholding on your employment status at the time of grant. If you work elsewhere or are retired at exercise or vesting, then...
A casualty or theft loss would allow you to deduct the lost amount against your ordinary income, subject to some limits. However, Treasury regulations and court rulings would probably stand in your way. Nevertheless, what you can do is...
Decisions in year-end financial and tax planning depend on several factors. In this FAQ, we present several situations and some strategies that many experts suggest. Of course, you should...
Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
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