Make tax season less taxing.

Transcription

1 Mak tax sasn lss taxing. TAX Infrmatin t hlp yu trmin yur 2013 tax-rprting rquirmnts Whn yu xrcis r sll shars acquir frm a stck-sttl plan, yu may hav taxabl rinary cmpnsatin incm t rprt whn yu fil yur tax rturn, in aitin t ptntial capital gains r lsss. T trmin yur tax-rprting rquirmnts, fllw th stps utlin in this cumnt. 1

2 Stp 1 1 Gathr th fllwing cumnts. Frm/ata Whr t fin it Wh t call Frm W-2 (r 1099-MIS if yu ar a nnmply) This frm will b prvi by yur mplyr/cmpany. Yur cmpany s payrll partmnt IRS Frm 100 (th full 100, nt th 100EZ r th 100A), incluing Schul D apital Gains an Lsss Frms ar availabl nlin at by calling 800.TAX.FORM ( ), r by visiting yur lcal IRS ffic. Yur lcal IRS ffic r yur tax avisr IRS Frm 899 This frm is availabl nlin at by calling 800.TAX.FORM ( ), r by visiting yur lcal IRS ffic. Yur lcal IRS ffic r yur tax avisr Frm 1099-B* Yu can accss th frm nlin at Fility.cm/taxfrms at th n f January. In aitin, a frm will b mail n latr than mi-fbruary, if applicabl. A Fility Stck Plan Srvics Rprsntativ at th numbr prvi n th statmnt *Yu will nt rciv a 1099-B fr cash-sttl r phantm shars. This frm nly applis t any shars f stck yu hl an subsquntly sl. 2

3 Stp 2 2 Rprt yur rinary incm. Th xrcis f a Stck Apprciatin Right (SAR) is trat as cmpnsatin, an yu will b rquir t pay rinary incm tax n th gain at xrcis. This amunt shul b rprt n yur W-2 r 1099-MIS (if yu ar a nnmply f th cmpany) prvi by yur cmpany alng with any tax withhling that may hav ccurr. It is th spra (th iffrnc btwn th nt sals pric an yur tax basis pr shar) at th tim f th xrcis that is trat as taxabl cmpnsatin. In aitin, yu may w tax n any capital gains rsulting frm th sal f yur stck frm th xrcis, which is xplain in latr stps. Exampl: IRS W-2 fr SARs & 100 b Emplyr intificatin numbr (EIN) a Emply s scial scurity numbr OMB N Saf, accurat, FAST! Us Visit th IRS wbsit at 1 Wags, tips, thr cmpnsatin 2 Fral incm tax withhl c Emplyr s nam, arss, an ZIP c 3 Scial scurity wags Scial scurity tax withhl 5 Micar wags an tips 6 Micar tax withhl 7 Scial scurity tips 8 Allcat tips ntrl numbr 9 10 Dpnnt car bnfits Emply s first nam an initial Last nam Suff. 11 Nnqualifi plans 12a S instructins fr bx Statutry mply 1 Othr f Emply s arss an ZIP c 15 Stat Emplyr s stat ID numbr 16 Stat wags, tips, tc. 17 Stat incm tax 18 Lcal wags, tips, tc. 19 Lcal incm tax 20 Lcality nam Rtirmnt plan Thir-party sick pay 12b 12c 12 Statmnt Wag an Tax Frm W-2 py B T B Fil With Emply s FEDERAL Tax Rturn. This infrmatin is bing furnish t th Intrnal Rvnu Srvic. Dpartmnt f th Trasury Intrnal Rvnu Srvic Th amunt f th spra is inclu in bxs 1 an 5 an als in bx 3 up t th maximum wag bas. SARs spra is inclu in bxs 16, 17, 18, an 19 if stat an lcal tax withhling applis. Fral taxs withhl ar inclu in bxs 2 an 6 an in bx up t th maximum wag bas. W-2 r 1099-MIS incm is rprt n lin 7 f Frm

4 Stp 3 3 Assmbl infrmatin n th sal f yur stck. Rfr t yur Fility Brkrag 1099 Tax-Rprting Statmnt (als availabl n Fility.cm/taxfrms) t trmin: Dat f Sal r Exchang Numbr f Shars Sl (Quantity Evnt) st r Othr Basis Prvi t IRS/Nt Prvi Prcs (Gain/Lss [ ]) Exampl: Fility Brkrag 1099-B Tax-Rprting Statmnt FORM 1099-B* 2013 Prcs frm Brkr an Bartr Exchang Transactins py B fr Rcipint OMB N Shrt-trm transactins fr which basis is rprt t th IRS rprt n Frm 899 with Bx A chck an/r Schul D, Part I (This Labl is a Substitut fr Bxs 1c & 6) (IRS Frm 1099-B bx numbrs ar shwn blw in bl typ) 8 Dscriptin, 1 Stck r Othr Symbl, USIP Actin 1a Dat f 1b Dat f 1 Quantity 2a Sals Pric 3 st r Gain/Lss (-) 5 Wash Sal Fral Stat Sal r Acquisitin Sl f Stcks, Othr Basis (b) Lss Incm Tax Stat Tax E xchang Bns, tc. (a) Disallw Withhl Withhl THETA IN, THT, XXXXXXXXX Sal 03/15/ /12/ , , , Sal 03/15/ /12/ , () 8.0 Subttals 36, , TOTALS 36, , Bx A Shrt-Trm Raliz Gain 2,008.0 Bx A Shrt-Trm Raliz Lss Bx A Wash Sal Lss Disallw

5 Stp Us th infrmatin frm IRS Frm 1099-B t cmplt IRS Frm 899 an IRS Frm 100, Schul D. T cmplt Frm 899 an Schul D, yu n t knw: Which shars yu sl frm which grant Whn yu acquir ths shars (i.., th xrcis at) Th fair markt valu f th stck at xrcis Th at f sal Th sal pric an whthr it is nt f cmmissin Yur cst basis Exampl: SAR Exrcis an Hl with sal aftr 12 mnths (hl lng-trm) 5

6 Stp 5 5 Us IRS Frm 899 t calculat yur capital gains an/r lsss n IRS Frm 100, Schul D. Gain r lss frm th sal f th stck shul b rflct n Frm 899 an Schul D. Hw this is rflct is pnnt n whthr th sal is shrt trm (lss than n yar frm th at th stck was acquir t th at it was sl) r lng trm (mr than n yar frm th at acquir t th at f sal). Exampl: Shrt-Trm Gains r Lsss Exampl: Lng-Trm Gains r Lsss 6

7 FAQ Frquntly Ask Qustins Q: I als rciv cash-sttl SARs. Why in t I rciv a 1099-B aftr I xrcis ths? A: ash-sttl SAR transactins rsult in n sal f stck; insta, yu ar givn th cash valu f th stck. As a rsult, yur W-2 r 1099-MIS will shw th incm frm th transactin (similar t a bnus paymnt). Fr stck-sttl SARs, yu will rciv a W-2 r 1099-MIS in th yar f xrcis, as wll as a Fility-issu 1099-B in th yar yu sll th stck yu rciv frm th xrcis. Q: Whr can I s hw much tax my mplyr withhl n my SAR xrcis? A: Yu shul b abl t s ths amunts rflct n yur W-2. Als, if yur mplyr prvi this infrmatin t Fility, tax withhling amunts will b list n yur mnthly statmnt r yur transactin cnfirmatin. Q: If I alray ha mny takn frm my brkrag accunt t pay withhling taxs, will I b tax again fr SARs that I xrcis? A: N, th spra at xrcis shul hav alray bn rprt t th IRS n Frm W-2 (an was inclu in yur incm fr th yar f xrcis). Yu ar tax n th capital gain r lss as calculat by th iffrnc btwn th nt sal pric an yur cst basis pr shar (i.., th ttal spra at xrcis ivi by th numbr f shars rciv fr th spra, which quals th stck pric at xrcis). Whn yu rprt th sal f th shars acquir in th SARs xrcis n Frm 899 an Schul D, yu avi ubl taxatin n th spra by using it as th cst basis (i.., nt th stck pric at grant plus th spra). Q: Will I w thr taxabl amunts byn fral tax? A: Stat an lcal taxs may als apply, an th ruls gvrning such taxs may vary frm fral incm tax ruls. Plas cnsult yur tax avisr fr mr infrmatin. G back t th Fility Rsurc ntr If yu hav qustins, a Fility Stck Plan Srvics Rprsntativ can hlp. all Fr spcifics n what yur cmpany uss as fair markt valu, plas s yur plan cumnts, as th fair markt valu may vary. Tax laws ar cmplx an subjct t chang. Stat an lcal taxs may als apply, an th ruls gvrning such taxs may vary frm fral incm tax ruls. Yur actual incm tax cnsquncs pn n yur iniviual circumstancs. Thrfr, yu shul always cnsult a qualifi tax avisr rgaring yur wn particular tax situatin. Fility Brkrag Srvics LL, Mmbr NYSE, SIP Fility Stck Plan Srvics, LL 201 FMR LL. All rights rsrv SAR-TAX-PDF-021