Tax Center - Tax Changes

Tax Center › Tax Changes

podcast icon Want to know more? Listen to our podcast on tax return tips and how to avoid reporting mistakes!

podcast icon Check out our podcast and video on the tax forms and reporting rules for stock sales.


Tax Season 2023: What You Must Know About Reporting Rules

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.

NEW! Two Special Tax-Return-Reporting Issues In 2023: Volatile Stock Prices And Employee Mobility This is premium content

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.

Get The Cost Basis Right To Avoid Overpaying Tax On Stock Sales: Understand IRS Forms 1099-B And 8949 For Tax Returns This is premium content

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.
Show More Articles (9 more)

6 Ways The 2018 Tax Reforms Affect 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.

The Impact Of Tax-Law Changes On Stock Option And Restricted Stock Strategies This is premium content

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 While in 2018 the Tax Cuts & Jobs Act superseded many prior tax provisions, other tax provisions introduced in previous legislation (such as the Affordable Care Act, i.e. Obamacare) remain in place.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.

Private Company Stock Options And RSUs: 10 Facts To Know About The New Tax-Deferral Opportunity This is premium content

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.

UPDATES! 4 Ways Biden's Tax Proposals Could Affect Stock Comp Financial Planning

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.

VIDEO! Tax-Return Reporting Of Company Stock Sales: How To Avoid Overpaying Taxes

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.

Tax Planning For Options, Restricted Stock, And ESPPs Continues To Be Affected By The 2013 Tax-Law Changes (Part 1) This is premium content

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.

Tax Planning For Options, Restricted Stock, And ESPPs Continues To Be Affected By The 2013 Tax-Law Changes (Part 2) This is premium content

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.

IRS Publication 550: Investment Income And Expenses

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).

IRS Guide To Auditing Techniques For Stock-Based Compensation

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.


UPDATED! What's new for the 2023 tax-return season?

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...

What are capital gain and capital loss? What are the tax rates on capital gains?

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...

How did the 2018 tax reforms affect stock compensation?

In effect from the start of 2018, the Tax Cuts & Jobs Act has provisions that directly and indirectly affect stock compensation...
Show More FAQs (9 more)

What is IRS Form W-4 and how does it apply to withholding 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...

Did the 2018 tax reforms change the tax-withholding rates on stock compensation? This is premium content

Yes. The Tax Cuts & Jobs Act, which took effect at the start of 2018, changed the withholding rates...

How did the 2018 tax reforms affect restricted stock and RSUs? This is premium content

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...

What are the additional Medicare taxes under the Affordable Care Act that impact stock compensation planning? This is premium content

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...

What is the latest news about legislation affecting the alternative minimum tax?

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...

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 tax-return reporting in recent years, making accurate tax-return reporting more complex and difficult...

What tax statement will I receive from my broker after a sale of company stock? What key facts should I know about it? This is premium content

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...

How have IRS Form 1099-B and cost-basis reporting changed for sales of stock acquired from my stock options, restricted stock, or ESPP? What do I need to do differently? This is premium content

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...

What if the wrong cost basis is reported on my 1099-B? How do I report the right cost basis on Form 8949 of my tax return? This is premium content

From our interpretation of the forms and their instructions, recommends the following reporting steps to avoid overpaying taxes...
We've updated our Privacy Policy, and this site uses cookies. Read the Privacy Policy to learn more.