Once again, the IRS has assigned us all homework due by mid-April. For tax returns involving equity comp and stock sales, the reporting has changed yet again for the 2022 tax-return season (income received in 2021). The changes, including where to put income left off Form W-2, expand what you must understand before you prepare your tax return.
With these and the many other tax changes of recent years, the 2022 tax-filing season presents more risk than ever for expensive errors on tax returns. Taxpayer mistakes can lead to overpaid tax, underreported income, IRS penalties, or even an IRS audit.
myStockOptions Tax Center: Valuable Tax-Return Resources
The fully updated myStockOptions Tax Center provides expert yet easily readable guidance on the filing and reporting of tax returns that involve stock options, restricted stock, restricted stock units (RSUs), performance shares, stock appreciation rights, and employee stock purchase plans (ESPPs).
An article and FAQ summarize changes in forms and reporting that taxpayers with stock compensation must know:
- Tax Season 2022: What You Need To Know About New Reporting Rules
- What's new for the 2022 tax-return season?
Other core articles and FAQs spell out the most common mistakes people make with stock grants on their tax returns. These include:
- 12 Tax-Return Mistakes To Avoid With Stock Options And ESPPs
- Restricted Stock & RSUs: 10 Mistakes To Avoid On Your Tax Return
You, your financial advisor, and your CPA can quickly run through these to be sure you submit error-free returns.
To get even more in-depth help with tax returns:
- The reporting of stock sales is made clear by special FAQs with annotated how-to diagrams of IRS Form 8949 and Schedule D.
- Diagrams of Form W-2, Form 3922 (for employee stock purchase plans), and Form 3921 (for incentive stock options) show how companies report equity compensation income to employees.
- An animated video explains how to avoid costly mistakes that can lead to the overpayment of taxes.
- Engaging podcasts convey tips for tax returns.
- A fun interactive quiz on tax-return topics lets users test their reporting knowledge in a painless way, before they file their returns, and links to related content from the answer key.
On-Demand Webinar About Preventing Tax-Return Mistakes
Held live on March 3 and now available on demand, the myStockOptions webinar Preventing Tax-Return Errors With Stock Comp And Stock Sales features insights from a panel of tax experts on how to avoid errors with tax returns involving equity comp and sales of company shares. It also offers special insights from panelist case studies on how to use information in tax returns to create better financial plans. The webinar recording offers 2.0 CE credits for the CFP, CEP, and CPWA/CIMA designations.
Panelists:
- Stephanie Bucko, CPA, CFA®, Mana Financial Life Design
- Dan Hodgin, CPA, Silicon Valley Tax Group
- Daniel Zajac, CFP®, EA, Zajac Group
- moderator: Bruce Brumberg, JD, editor-in-chief of myStockOptions
A detailed agenda is available at the webinar on-demand page.
Know Before You File
Remember that accountants and tax advisors sometimes make mistakes, so even if your return is being handled by a preparer, it's good to know the reporting. The last thing you want for your tax return is to pay too much tax, incur IRS penalties, or draw unwanted IRS attention leading to an audit.
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