Because the value of the shares at vesting was added to your W-2, and withholding taxes were based on that value, you thought you did not need to file Schedule D with your Form 1040 to report the sale. It is a common mistake to think this...
Major changes have occurred in tax-return reporting in recent years, making accurate tax-return reporting more complex and difficult...
There are a few reporting modifications you should be aware of when preparing your tax return in 2023 (income received in 2022). The key changes are summarized in brief below. For a fuller discussion...
For each part of the grant that vests in a tax year, the full value...
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...
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...
This is an area in which mistakes often occur. The cost basis, also called the tax basis, is calculated in the following way...
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...
From our interpretation of the forms and their instructions, myStockOptions.com recommends the following reporting steps to avoid overpaying taxes...
You need to complete Form 8949 and Schedule D for the year of your stock sale and file them with your IRS Form 1040 tax return. You must...
The vesting and the sale are separate transactions. First the stock's value at vesting is taxed, unless...
You should definitely report a sale for taxes at vesting if you received a 1099-B that shows the proceeds. The IRS will...
You should definitely report a sale for taxes at vesting if you received a 1099-B that shows the proceeds. The IRS will...
You need to complete Form 8949 and Schedule D for the year of your stock sale and file them with your IRS Form 1040 tax return. You must...
You need to complete Form 8949 and Schedule D for the year of your stock sale and file them with your IRS Form 1040 tax return. You do this even if...
In any tax year, stock compensation income, such as from an NQSO exercise, an ISO or ESPP disqualifying disposition, or the vesting of restricted stock, can raise your income tax and make your return complex. Mistakes include not paying taxes owed with...
Yes. While the tax treatment of restricted stock and RSUs is the same for everyone, the reporting and withholding are different for employees and nonemployees...
Let's first review the tax rules and the W-2 reporting. The tax basis for...
You have different types of taxable income. The tax law says you can offset losses against only the...
Dividends that are earned on restricted stock are considered compensation income, which is reported on your W-2 (1099-MISC for nonemployees, such as directors). Once the shares vest, dividends are no longer compensation and instead become...
If you simply lack the funds to pay your income tax, you may want to apply for a payment agreement on the...
Yes, significantly. In addition, fluctuations of income, which can be caused by stock compensation, are a red flag that can trigger an audit. According to research...
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...
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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