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

Restricted Stock: W-2s & Tax Returns

UPDATES! 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 is increased by new IRS reporting forms and rules for the 2019 tax season. This article explains errors to avoid when reporting stock compensation and stock sales on your tax return.
Tax Changes UPDATES!

Tax Season 2019: What You Need To Know About The New Reporting Rules And Tax Rates

Ready or not, tax-return reporting has significantly changed for the 2019 tax-return season. To prevent mistakes when reporting income from equity compensation or sales of company shares, you must understand these changes, explained in this article, before you prepare your tax return.
Restricted Stock: W-2s & Tax Returns

How To Report Sales Of Company Stock On Your Tax Return

Form 8949 and Sch. D diagrams! If you sold in 2018 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 2019. 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.
Show More Selected Articles
ESPPs: W-2s & Tax Returns

12 Tax-Return Mistakes To Avoid With Stock Options And ESPPs This is premium content

Puzzled by what to do with your W-2, Form 1099-B, or Forms 3921 and 3922? Don't quite know how and where to report sales of company stock on Form 8949 and Schedule D? Tax returns involving income from stock options or ESPPs can be confusing. The potential for mistakes is increased by new IRS reporting forms and rules for the 2019 tax season. This article explains errors to avoid when reporting stock compensation and stock sales on your tax return.
NQSOs: W-2s & 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!

Six 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...
Tax Changes UPDATES!

UPDATES! What's new for the 2019 tax-return season?

For employees who received income from stock compensation or sales of company stock in 2018, there are major changes in IRS forms and reporting to be aware of for 2018 tax returns filed in 2019...
Restricted Stock: W-2s & Tax Returns

What are the top 10 questions I should ask before I report my stock sales on my tax return?

This FAQ presents 10 questions you should ask to be sure that you report your stock sales accurately and avoid costly mistakes that attract the attention of the IRS...
Show More Selected FAQs
Restricted Stock: W-2s & Tax Returns

What are some major issues to be aware of when reporting stock sales on my tax return? Why have these issues arisen?

Major changes have occurred in the tax reporting for stock sales during the past few years, making accurate tax-return reporting more complex and difficult...
Tax Changes UPDATES!

UPDATES! What are capital gains and capital losses? What are the capital gains tax rates?

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

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

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...
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...
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...
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.