Reporting stock sales on your tax return has not gotten any easier (or more exciting) this year. However, if there's a way to make learning about accurate tax-return reporting less tedious, we'll try it. In the Tax Center at myStockOptions.com, two animated videos give practical guidance about the reporting of company stock sales on tax returns in an engaging style. The covered topics include IRS Form 1099-B and the cost basis of shares acquired from equity comp, along with the reporting on IRS Form 8949 and Schedule D. These videos offer a quick way to learn the basics of these important points and prevent expensive mistakes on tax returns.
New this tax season is Tax-Return Reporting Of Company Stock Sales: How To Avoid Overpaying Taxes (running time: 8:05). In this video, the tax experts at myStockOptions.com explain:
- the rules for reporting stock sales on your tax return
- major errors to avoid if the shares you sold came from stock options, restricted stock/RSUs, stock appreciation rights, or an employee stock purchase plan
- the "cost basis" of shares acquired from equity compensation
- why it is crucial to understand your cost basis to avoid overpaying your taxes
The video also covers recent modifications of IRS rules, how these changes restricted what brokers can report on Form 1099-B for stock sales, and the related adjustments you must make on your tax return. Included are examples and annotated versions of key IRS forms to show the correct way to report your taxes and prevent costly mistakes. The video ends with key takeaways to remember so that you do not overpay taxes and attract unwanted IRS attention.
In our other tax video, Tax-Return Forms And Reporting Rules For Stock Sales (running time: 8:08) you will learn about:
- the reporting on Form 1099-B, and why the reported cost basis may be wrong or omitted
- how to figure out the right cost basis for your stock sales
- Form 8949 and how to report stock sales on it
- how to interpret Form 1099-B when completing Form 8949
- what to do when the cost basis in Box 3 of Form 1099-B is too low or not given
- totaling the reported stock sales on Schedule D
Please try our videos! They're informative, and each is just eight minutes long.
Like all the content at myStockOptions.com, these videos can be licensed and customized to fit company stock plans. We also have podcasts with audio presentations on tax-return topics. Our video and podcasts complement the helpfully annotated diagrams of Form 8949 and Schedule D that appear in special FAQs in our Tax Center.