The IRS has made important changes to tax reporting rules for equity compensation, and myStockOptions.com has updated its online Tax Center to reflect them.
Key changes include the way capital gains and the alternative minimum tax (AMT) are reported on tax returns. “With these and the many other tax changes of recent years, the 2021 tax season presents more risk than ever for expensive mistakes on tax returns, especially for the millions of people in the United States who received income in 2020 from employee stock compensation and sales of company shares,” the company says.
It notes that this is the third year in a row with changes in capital gains reporting on Form 1040.
myStockOptions.com explains the tax-return forms and reporting that taxpayers need to know in its fully updated Tax Center. This clear and reliable information includes easy-to-understand guidance and annotated tax forms.
“The tax reporting for stock compensation is complex,” says Bruce Brumberg, editor-in-chief of myStockOptions.com. “The changes for 2021 expand what you must understand before you prepare your tax return. Even accountants and tax advisers sometimes make mistakes. Our goal is to help employees and their financial or tax advisers realize the full potential of equity compensation by educating them about tax rules and helping them prevent costly errors. The last thing taxpayers want is to pay too much tax or incur IRS penalties that take yet more money out of their pockets.”
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