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.
Surprise! (Or maybe not.) The federal tax-return reporting for stock compensation and company shares is complicated. For taxpayers who had income from stock compensation and/or company shares last year, this article presents key aspects of the Form 1040 tax return, its associated schedules and forms, and more details on changes for the 2023 tax season.
The impact of down and volatile stock markets can complicate your tax return. So can interstate mobility and allocation of income between states, a growing issue as more employees work remotely or become digital nomads. This article presents insights on these topics from tax experts.
Video included! The stock-sale information provided by brokers on IRS Form 1099-B has changed. Cost-basis reporting, both for your broker on Form 1099-B and for you on your tax return, is now more complex, confusing, and vulnerable to errors. This article explains the crucial facts you must know to avoid overpaying tax or attracting unwanted IRS attention.
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.
Podcast included! While in 2018 the Tax Cuts & Jobs Act superseded many prior tax provisions, other tax provisions introduced in previous legislation (such as the Affordable Care Act, i.e. Obamacare) remain in place. Income thresholds for the tax brackets trigger higher tax rates, so it is wise to monitor the tax impact of income-generating events stemming from stock compensation. This article suggests strategies for minimizing their impact.
Shares in privately held companies lack liquidity and thus cannot be sold, creating difficulty when taxes are owed on income recognized from stock option exercise and RSU vesting. To address this problem, the Tax Cuts & Jobs Act introduced an income-deferral opportunity for certain types of stock compensation at private companies. These "qualified equity grants" are now provided by the Section 83(i) of the tax code.
Could President Biden's proposed tax changes impact the piggy banks of employees with stock comp and company shares? Yes, depending on income. Some of the proposed tax hikes, such as an increase in the top capital gains rate, may require you to adjust your financial and tax planning ahead of time.
Learn the rules for reporting stock sales on your tax return, along with costly errors to avoid if the shares you sold came from stock options, restricted stock/RSUs, stock appreciation rights, or an employee stock purchase plan. Among other issues, you must understand your "cost basis" to avoid overpaying your taxes. Running time: 8:05.
Notable shifts in tax rates occurred in 2013 for people with high incomes. Part 1 surveys these important tax changes and considers their ongoing impact on planning. Even after the changes made by the Tax Cuts & Jobs Act in 2018, many of the rates, income thresholds, and planning ideas covered in this article still apply.
Part 2 of this article series looks at planning strategies involving capital gains rates, the AMT, and ISOs, and considers general ideas related to income-shifting.
This extensive IRS guide covers many topics related to reporting income and expenses from investments, including dividends (Chapter 1), capital gains (Chapter 4), and interest on loans (Chapter 3).
The IRS tips its hand on what its agents look for in audits related to all types of stock pay to ensure compliance, whether by corporations or executives.
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...
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...
IRS Form W-4 determines how much federal withholding tax will be deducted from your paycheck, at least from your salary. You want to submit a new Form W-4 to adjust your withholding whenever your personal or financial situation changes. In 2020, the IRS introduced a revised Form W-4 that...
While the core tax treatment of restricted stock and RSUs has not changed, the Tax Cuts & Jobs Act has provisions that directly and indirectly affect restricted stock/RSUs...
Two features in the Affordable Care Act (Obamacare) affect your Medicare tax and any planning to minimize it. For people whose yearly income is above certain thresholds, extra Medicare tax applies to both compensation and investment income...
The Tax Cuts & Jobs Act, which took effect in 2018, made significant changes to factors in the calculation of the alternative minimum tax (AMT) that will generally reduce the likelihood of...
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...
Reporting Stock Sales 2023 UPDATES!
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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