📊 Navigating Equity Compensation and Taxes: What You Need to Know! 💼✨
In today’s job market, equity compensation is a key part of many employee pay packages, especially in the tech world.
But with great perks come great responsibilities—like understanding how to match your equity compensation with tax reports! 🤔💰
Here’s the scoop: when you exercise stock options or receive Restricted Stock Units (RSUs), the income from these actions hits your pay stub and later shows up on your W-2 form.
It’s taxed as ordinary income, so it’s vital to ensure these figures align with what you report to the IRS. 📝
But it doesn’t stop there! When you sell those shares, you’ll also encounter capital gains tax, reported on Form 1099-B from your brokerage.
This tax is calculated based on the profit from the sale—so keeping track of your stock’s cost basis is essential to avoid double taxation! 📈💸
Pro Tip: Keep detailed records of your equity compensation transactions, including grant dates and exercise prices. Plus, consider how long you hold your shares—long-term holdings can mean lower tax rates on capital gains!
Navigating this complex landscape doesn’t have to be overwhelming.
Tune into our latest episode to dive deeper into matching equity compensation with tax reports and learn how to optimize your tax outcomes! 🎧🔍
#EquityCompensation #TaxPlanning #PersonalFinance #IRS #PodcastEpisode
Follow for more!
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Listen to the full episode here:
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YouTube:
https://youtu.be/CgQZW0Ma8kg
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Audio Podcast:
https://www.techequityandmoneytalk.com/rsus-and-equity-compensation/
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