Key Points

Learn how to report sales of Employee Stock Purchase Plans (ESPP) and Restricted Stock Units (RSU) on your tax return.
Understand the necessary documentation and adjustments needed to avoid double taxation.
Step-by-step guidance on using TurboTax for reporting these transactions.

Introduction

In this video, Anthony Fontana, a CPA, explains how to report the sales of ESPP and RSU on your tax return, specifically for stocks held in a Charles Schwab brokerage account. This information is crucial for anyone dealing with stock options and tax reporting. Watch the intro.

Required Documentation

Before starting your tax return, ensure you have the following documents:

W-2 form
1099-B from the brokerage account
Activity statement from Charles Schwab
Purchase disposition summary Learn more about documentation.

Analyzing the W-2

The W-2 form shows taxable income, including stock option gains and RSUs. It's important to analyze this to avoid confusion with offsets that may appear on the form. W-2 analysis.

IRS Form 1099-B Analysis

The 1099-B form details the sales of stocks and is essential for calculating capital gains. Understanding whether these are qualifying or disqualifying dispositions is key to proper reporting. Explore 1099-B analysis.

Reporting in TurboTax

Anthony walks through how to enter this information into TurboTax, including adjustments for basis to prevent double taxation. He emphasizes the importance of checking the basis reported to the IRS. TurboTax reporting.

Conclusion

The video concludes with a recap of the necessary adjustments and how to ensure accurate reporting on your tax return. Anthony encourages viewers to double-check their entries to avoid errors. Final thoughts.

Comments Summary & Sentiment

The comments reflect a positive sentiment, with viewers expressing gratitude for the clarity of the video and asking for further assistance on related topics. Many found the information helpful for understanding their tax obligations regarding ESPP and RSU sales.