Prevent Costly Tax Return Mistakes With Tax Center On myStockOptions.com

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Every tax season raises worries about costly errors on tax returns, especially for employees who must report sales of company stock from stock option exercises and restricted stock vesting. myStockOptions.com, the top online resource of educational content on stock pay, has enhanced its award-winning Tax Center with a unique section about reporting sales of company stock on Schedule D of IRS Form 1040.

Every tax season raises worries about costly errors on tax returns, especially for employees who must report sales of company stock. Even their accountants and tax advisors can make mistakes. myStockOptions.com, the top online resource of educational content on stock pay, has enhanced its award-winning Tax Center with a unique section about reporting sales of company stock on Schedule D of IRS Form 1040 (Reporting Company Stock Sales).

Using clear explanations and easy-to-follow annotated diagrams of the actual IRS form, detailed FAQs show employees, accountants, and tax advisors how to complete Schedule D ("Capital Gains and Losses") for a variety of situations involving sales of stock from:

  • nonqualified stock options (NQSOs)
  • incentive stock options (ISOs)
  • restricted stock
  • restricted stock units (RSUs)
  • employee stock purchase plans (ESPPs)
  • stock appreciation rights (SARs)

"The tax reporting for stock compensation can be complex," observes Bruce Brumberg, Editor-in-Chief of myStockOptions.com. "Our goal is to help employees with stock pay realize the full potential of their grants by educating them about tax rules and helping them prevent mistakes."

Reporting For Many Types Of Stock Sales

The section answers questions on a wide variety of reporting for stock sales, from basic to complex. Advanced reporting situations, all fully illustrated, include:

  • I exercised NQSOs, held the stock, and now have long-term capital gains on the sale. Do I get any "credit" on my tax return for the income tax I paid for the spread at exercise?
  • How am I taxed if I have made a disqualifying disposition of incentive stock option (ISO) shares in a different year than the year I exercised the option?
  • When I hold restricted stock after it vests and later have capital gains on the sale, will I get any "credit" for the income tax I paid at vesting?
  • When my restricted stock units vested, my company automatically withheld shares to cover the tax. Do I need to report these shares on my Schedule D?
  • My company's employee stock purchase plan (ESPP) is not tax-qualified under Section 423 of the Internal Revenue Code. How do I report any gain that results from the sale of my ESPP shares on my federal income-tax return?
  • How do I report any gain that results from the sale of my stock appreciation rights (SARs) shares on my federal income-tax return?

The answers to these questions are presented in plain English and are clearly illustrated with annotated diagrams of the real IRS form.

Corporate Licensing Available

Like all the content on myStockOptions.com, the Tax Center is ideally suited for licensing by companies for their stock plan participants. A customized version of the website's award-winning content can be seamlessly integrated into companies' HR, benefits, and/or compensation portals. For more information, visit http://www.mystockoptions.com or call 617-734-1979.

About myStockOptions.com

With exclusive articles, 670+ FAQs, the Tax Center, Global Tax Guide, an extensive glossary, and interactive tools, myStockOptions.com is the premier online resource of educational content and tools on stock options, restricted stock, restricted stock units, stock appreciation rights, and employee stock purchase plans. The company is managed by leading experts in equity compensation, with a long history of successful newsletters, books, and training videos devoted to equity pay topics.

PC World ranks myStockOptions.com among "the most useful sites ever" that "deliver top-notch information, support, and services." myStockOptions.com has also received extensive favorable coverage in major publications, including BusinessWeek, The Wall Street Journal, The New York Times, the San Francisco Chronicle, and The Boston Globe, and on CNN/fn, National Public Radio, PBS, Money.com, and CBSMarketWatch.com.

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Bruce Brumberg