🧾Stock Tax Tip
For years, I've seen teammates pay double taxes on stock grants. And *many* individuals & tax advisors prepare it incorrectly. ☹️
If you're fortunate enough to have sell-to-cover Restricted Stock Unit (RSU) grants – this probably needs adjusted.
Here's the fix:
For years, I've seen teammates pay double taxes on stock grants. And *many* individuals & tax advisors prepare it incorrectly. ☹️
If you're fortunate enough to have sell-to-cover Restricted Stock Unit (RSU) grants – this probably needs adjusted.
Here's the fix:
There may be a tiny caveat in your broker's documentation suggesting you will be double taxed. I heard it was due to a rule change in 2014 (sfgate.com/business/netwo…).
Pictured: the single note in an eTrade PDF.
The impact can be several thousands of dollars overpaid each year...
Pictured: the single note in an eTrade PDF.
The impact can be several thousands of dollars overpaid each year...
So here's how you get the right info using Excel!
These steps are for eTrade, but can be adapted for another broker.
Step 1⃣: Download the tax year's full gains & losses as a CSV.
Stock Plan > My Account > Gains & Losses > [tiny] Download button
These steps are for eTrade, but can be adapted for another broker.
Step 1⃣: Download the tax year's full gains & losses as a CSV.
Stock Plan > My Account > Gains & Losses > [tiny] Download button
Step 2⃣: Select your data & create a #PivotTable
Select the values as pictured.
For sanity, add the term & plan type as rows (this will make all numbers match up to your employer-issued W2 & 3922 and the broker-issued 1099)
Will look like 2nd @msexcel pic...
Select the values as pictured.
For sanity, add the term & plan type as rows (this will make all numbers match up to your employer-issued W2 & 3922 and the broker-issued 1099)
Will look like 2nd @msexcel pic...
Important for eTrade data export - make sure you delete the "Summary" row in the CSV.
If you're seeing a value of "MULTIPLE" in your #PivotTable (picture 1), that means you forgot to delete it...
If you're seeing a value of "MULTIPLE" in your #PivotTable (picture 1), that means you forgot to delete it...
Time to file an 8949 correctly reporting RSU cost basis!
Remember, if you haven't downloaded your full eTrade Gains & Losses, you probably haven't done this correctly before.
📄IRS Form 8949: irs.gov/pub/irs-pdf/f8…
The only data you've been missing is column (e), cost basis...
Remember, if you haven't downloaded your full eTrade Gains & Losses, you probably haven't done this correctly before.
📄IRS Form 8949: irs.gov/pub/irs-pdf/f8…
The only data you've been missing is column (e), cost basis...
Step 3⃣. Short-term sell-to-cover RSU cost basis
Fill out Part I, Box B, Column (e)
with the number from the eTrade #PivotTable built above...
Fill out Part I, Box B, Column (e)
with the number from the eTrade #PivotTable built above...
Step 4. Long-term sell-to-cover RSU cost basis
Fill out Part II, Box E, Column (e)
with the corresponding PivotTable value
*breathe a sigh of relief* ...
Fill out Part II, Box E, Column (e)
with the corresponding PivotTable value
*breathe a sigh of relief* ...
That's it! You're done.
Bring this data for tax prep. Consider reviewing your previous returns. 🍻
I included those other values in the #PivotTable to match up with your W2, 3922, 1099, etc - purely for your sanity. It will all make more sense at the end.
Bring this data for tax prep. Consider reviewing your previous returns. 🍻
I included those other values in the #PivotTable to match up with your W2, 3922, 1099, etc - purely for your sanity. It will all make more sense at the end.
