Determining your 2015 stock plan tax requirements — a step

Transcription

Your Employee Stock Purchase Plan (for qualified plans)
Step 11
STEP
Step 2
STEP
Step
STEP33
Step
4 4
STEP
Step
5 5
STEP
FAQ
FAQ
Determining your 2015
stock plan tax requirements
— a step-by-step guide
Only when you sell shares acquired from a qualified
ESPP does a taxable event occur. Upon selling shares,
you may have taxable ordinary income to report, in
addition to any capital gains or losses. To determine
your tax-reporting requirements, follow the steps
outlined in this document.
4
INSIDE
How to use the
Supplemental Form
to avoid
overpaying taxes
14
STEP33
Step
STEP
Step 2
STEP
Step 11
STEP
Step
4 4
FAQ
FAQ
STEP
Step
5 5
Gather the following documents.
1
Form/data
Where to find it
Who to call
Form W-2
This form will be provided by your
employer/company.
Your company’s payroll
department
IRS Form 1040 (the full
1040, not the 1040EZ or the
1040A), including Schedule D
Capital Gains and Losses
Forms are available online at www.irs.gov,§
by calling 800.TAX.FORM (800.829.3676),
or by visiting your local IRS office.
Your local IRS office or
your tax advisor
IRS Form 8949
This form is available online at www.irs.gov,§
by calling 800.TAX.FORM (800.829.3676),
or by visiting your local IRS office.
Your local IRS office or
your tax advisor
Form 1099-B
You can access the form online at
Fidelity.com/taxforms at the end of January.
In addition, a form will be mailed no later than
mid-February, if applicable.
A Fidelity Stock Plan
Services Representative
at the number provided
on the statement
2015 Supplemental
Information (Fidelity is providing
you with additional information to
supplement your 1099-B due to
cost basis regulations that no
longer permit brokers to include
ordinary income.)
You can access the form online at
Fidelity.com/taxforms at the end of January.
In addition, a form will be mailed no later than
mid-February, if applicable.
A Fidelity Stock Plan
Services Representative
at the number provided
on the statement
Participant uses these
Fidelity forms…
FORM 1099-B*
Part I
(IRS Form 1099-B box numbers are shown below in bold type)
1a Description of property, Stock or Other Symbol, CUSIP
Quantity 1b Date
Acquired
1c Date Sold
or Disposed
1d Proceeds
1e Cost or
Other Basis (b)
1f Code, If Any
1g Adjustments
Gain/Loss (-)
4 Federal
14
Income Tax State
Withheld
16 State
Tax
Withheld
THETA INC, TTT, 123456789
Sale
445.000
Sale
445.000
02/25/15
02/25/15
02/25/15
02/25/15
62,967.73
62,967.73
2015 SUPPLEMENTAL INFORMATION
32,703.05(e)
30,264.68
32,703.05(e)
30,264.68
Subtotals
125,935.46
65,406.10
TOTALS
125,935.46
Box A Short-Term Realized Gain
Box A Short-Term Realized Loss
Box A Wash Sale Loss Disallowed
Box A Market Discount
65,406.10
NAME
Account No.
X00-000000 Customer Service:
800-000-0000
Recipient ID No. ***-**-0000 Payer's Fed ID Number: 00-0000000
60,529.36
Note: This information is not reported to the IRS. It may assist you in tax return preparation.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
0.00
0.00
0.00
0
0.00
Detail Information
Supplemental Stock Plan Lot Detail
* This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you
Based
the disposal method you have selected, the lots that appear on your 1099 Supplemental may differ from the lots on the 1099-B.
if this income is taxable and the IRS determines that it has not
beenon
reported.
Short-Term Transactions
Description of Property, Stock or Other Symbol, Cusip
Grant
Type (w)
Quantity
QSOP
445.000
QSOP
445.000
Date of
Acquisition (x)
Date Sold
or Disposed
02/25/15
02/25/15
02/25/15
02/25/15
Totals
Proceeds
Ordinary Income
Reported (y)
62,967.73
62,967.73
30,344.55
30,344.55
125,935.46
Short-Term Adjusted Realized Gain
Short-Term Adjusted Realized Loss
Wash Sale Loss Disallowed
▶
▶
Information about Form 8949 and its separate instructions is at www.irs.gov/form8949.
File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D.
Schedule D
SCHEDULE D
(Form 1040)
OMB No. 1545-0074
2015
Attachment
Sequence No. 12A
Department of the Treasury
Internal Revenue Service (99)
Social security number or taxpayer identification number
Adjusted Cost or
Other Basis (z)
Wash Sale Loss
Disallowed
Adjusted Gain/Loss
63,047.60
63,047.60
0.00
0.00
-79.87
-79.87
126,095.20
to
complete…
Part I
Short-Term. Transactions involving capital assets you held 1 year or less are short term. For long-term
transactions, see page 2.
Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was
reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on
Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions).
You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions,
complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page
for one or more of the boxes, complete as many forms with the same box checked as you need.
(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(B) Short-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS
(C) Short-term transactions not reported to you on Form 1099-B
1
(a)
Description of property
(Example: 100 sh. XYZ Co.)
(b)
Date acquired
(Mo., day, yr.)
(c)
Date sold or
disposed of
(Mo., day, yr.)
(d)
Proceeds
(sales price)
(see instructions)
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
(e)
(h)
enter a code in column (f).
Cost or other basis.
Gain or (loss).
See the Note below See the separate instructions.
Subtract column (e)
and see Column (e)
from column (d) and
(f)
(g)
in the separate
combine the result
Code(s) from
instructions
with column (g)
Amount of
instructions
adjustment
0.00
-159.74
0.00
negative amounts). Enter each total here and include on your
Schedule D, line 1b (if Box A above is checked), line 2 (if Box B
above is checked), or line 3 (if Box C above is checked) ▶
Form 1099-Supplemental
§
Cat. No. 37768Z
Form 8949 (2015)
Attachment
Sequence No. 12
Your social security number
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
Adjustments
to gain or loss from
Form(s) 8949, Part I,
line 2, column (g)
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . .
4
5
6
(
)
7
Long-Term Capital Gains and Losses—Assets Held More Than One Year
(e)
Cost
(or other basis)
(g)
(h) Gain or (loss)
Adjustments
Subtract column (e)
to gain or loss from
from column (d) and
Form(s) 8949, Part II, combine the result with
line 2, column (g)
column (g)
8a Totals for all long-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 8b .
8b Totals for all transactions reported on Form(s) 8949 with
Box D checked . . . . . . . . . . . . .
9 Totals for all transactions reported on Form(s) 8949 with
Box E checked . . . . . . . . . . . . .
Box F checked . . . . . . . . . . . . . .
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss)
from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . .
13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . .
14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on
the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions.
Last name
Last name
Filing Status
(d)
Proceeds
(sales price)
U.S. Individual Income Tax Return
OMB No. 1545-0074
, 2015, ending
Foreign country name
1b Totals for all transactions reported on Form(s) 8949 with
Box A checked . . . . . . . . . . . . .
Box B checked . . . . . . . . . . . . .
Box C checked . . . . . . . . . . . . .
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
15
(99)
Department of the Treasury—Internal Revenue Service
If a joint return, spouse’s first name and initial
Cat. No. 11338H
Rolls
up
into
11
12
13
14 (
IRS Use Only—Do not write or staple in this space.
See separate instructions.
, 20
Your social security number
Spouse’s social security number
Apt. no.
Make sure the SSN(s) above
and on line 6c are correct.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
(h) Gain or (loss)
Subtract column (e)
from column (d) and
combine the result with
column (g)
1a Totals for all short-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 1b .
Part II
1040
For the year Jan. 1–Dec. 31, 2015, or other tax year beginning
Your first name and initial
Home address (number and street). If you have a P.O. box, see instructions.
Short-Term Capital Gains and Losses—Assets Held One Year or Less
12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1
2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an
adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
For Paperwork Reduction Act Notice, see your tax return instructions.
2015
▶ Attach to Form 1040 or Form 1040NR.
Information about Schedule D and its separate instructions is at www.irs.gov/scheduled.
▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
Rolls
up
into
Form 1040
OMB No. 1545-0074
Capital Gains and Losses
▶
Name(s) shown on return
Short-term transactions for which basis is reported to the IRS --report on Form 8949 with Box A checked and/or Schedule D, Part I
Proceeds are reported as gross proceeds unless otherwise indicated (a).(This Label is a Substitute for Boxes 2, 3, 5 & 6)
Action
Sales and Other Dispositions of Capital Assets
Name(s) shown on return
Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute
statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your
broker and may even tell you which box to check.
Copy B for Recipient OMB No. 1545-0715
2015 Proceeds from Broker and Barter Exchange Transactions
8949
Department of the Treasury
Internal Revenue Service
Account No.
800-000-0000
NAME
Form
Form 8949
Form
2015 TAX REPORTING STATEMENT
0 00
)
15
Check only one
box.
Exemptions
1
2
3
6a
b
c
4
Single
Married filing jointly (even if only one had income)
Presidential Election Campaign
Head of household (with qualifying person). (See instructions.) If
the qualifying person is a child but not your dependent, enter this
child’s name here.
Married filing separately. Enter spouse’s SSN above
and full name here.
5
(1) First name
.
.
.
.
.
.
.
.
.
.
.
(2) Dependent’s
social security number
Last name
.
.
}
Qualifying widow(er) with dependent child
Yourself. If someone can claim you as a dependent, do not check box 6a .
Spouse
.
Dependents:
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
a box below will not change your tax or
refund.
You
Spouse
Foreign postal code
Foreign province/state/county
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(4) if child under age 17
qualifying for child tax credit
(see instructions)
(3) Dependent’s
relationship to you
Dependents on 6c
not entered above
d
Income
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
If you did not
get a W-2,
see instructions.
Adjusted
Gross
Income
Boxes checked
on 6a and 6b
No. of children
on 6c who:
• lived with you
• did not live with
you due to divorce
or separation
(see instructions)
If more than four
dependents, see
instructions and
check here
.
.
.
.
.
.
.
.
.
.
7
Wages, salaries, tips, etc. Attach Form(s) W-2
.
.
.
.
.
.
.
.
.
.
.
.
7
8a
b
9a
Taxable interest. Attach Schedule B if required .
Tax-exempt interest. Do not include on line 8a .
Ordinary dividends. Attach Schedule B if required
Total number of exemptions claimed
.
.
.
.
.
.
.
.
.
.
.
.
.
8b
. .
.
.
.
.
.
.
.
.
8a
.
.
.
.
.
.
.
.
9a
10
11
Qualified dividends . . . . . . . . . . .
9b
Taxable refunds, credits, or offsets of state and local income taxes
Alimony received . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
10
11
12
13
14
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . .
Capital gain or (loss). Attach Schedule D if required. If not required, check here
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . .
.
.
12
13
14
15a
16a
17
IRA distributions .
15a
b Taxable amount
. . .
Pensions and annuities 16a
b Taxable amount
. . .
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
15b
16b
17
18
19
20a
Farm income or (loss). Attach Schedule F .
Unemployment compensation . . . .
Social security benefits 20a
18
19
20b
b
.
.
.
.
.
.
.
.
. . . . . .
. . . . . .
b Taxable amount
.
.
.
.
.
.
.
21
22
Other income. List type and amount
Combine the amounts in the far right column for lines 7 through 21. This is your total income
23
Educator expenses
.
.
.
.
.
.
.
.
.
.
.
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ
Health savings account deduction. Attach Form 8889
.
24
25
26
27
28
Moving expenses. Attach Form 3903 . . . . . .
Deductible part of self-employment tax. Attach Schedule SE .
Self-employed SEP, SIMPLE, and qualified plans
. .
26
27
28
29
30
31a
Self-employed health insurance deduction
Penalty on early withdrawal of savings . .
.
.
.
.
.
.
.
.
29
30
31a
32
33
34
Alimony paid b Recipient’s SSN
IRA deduction . . . . . . .
Student loan interest deduction . .
Tuition and fees. Attach Form 8917 .
.
.
.
.
.
.
.
.
.
.
.
.
32
33
34
35
36
37
Domestic production activities deduction. Attach Form 8903
35
Add lines 23 through 35 . . . . . . . . . . . . .
Subtract line 36 from line 22. This is your adjusted gross income
.
.
.
21
22
23
24
25
.
.
.
.
.
.
.
Add numbers on
lines above
.
.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
.
.
.
.
.
.
.
.
.
36
37
Cat. No. 11320B
Form
1040
(2015)
Schedule D (Form 1040) 2015
idelity is not involved in the preparation of the content supplied at the third-party unaffiliated website and does not guarantee or
F
assume any responsibility for its content.
4
Form 1099-B
24
STEP
Step 11
STEP33
Step
STEP
Step 2
STEP
Step
4 4
STEP
Step
5 5
FAQ
FAQ
Report your ordinary income.
2
Your company may report your ESPP income after you sell your stock on your W-2 as wages in
Box 1 if you are a salaried employee. Even if your company does not report the income from an
ESPP as compensation on your W-2, you are still responsible for properly reporting and paying
tax on the amount of ordinary income. In addition, you may owe tax on any capital gains
resulting from the sale of your stock, which is explained in later steps.
Example: IRS W-2 for ESPP & 1040
a Employee’s social security number
OMB No. 1545-0008
Safe, accurate,
FAST! Use
Visit the IRS website at
www.irs.gov/efile§
b Employer identification number (EIN)
1 Wages, tips, other compensation
2 Federal income tax withheld
c Employer’s name, address, and ZIP code
3 Social security wages
4 Social security tax withheld
5 Medicare wages and tips
6 Medicare tax withheld
7 Social security tips
8 Allocated tips
9
d Control number
e Employee’s first name and initial
10 Dependent care benefits
Suff. 11 Nonqualified plans
Last name
13
Statutory
employee
Retirement
plan
12a See instructions for box 12
C
o
d
e
Third-party
sick pay
12b
C
o
d
e
Your employer may also
use this area to report
additional compensation.
12c
14 Other
C
o
d
e
12d
C
o
d
e
f Employee’s address and ZIP code
15 State
Form
Employer’s state ID number
W-2
Wage and Tax
Statement
16 State wages, tips, etc.
17 State income tax
2014
2015
18 Local wages, tips, etc.
19 Local income tax
20 Locality name
Department of the Treasury—Internal Revenue Service
Copy B—To Be Filed With Employee’s FEDERAL Tax Return.
This information is being furnished to the Internal Revenue Service.
For illustrative purposes only.
ESPP income will usually be
included with your other
compensation in box 1.
ESPP income could be included
in boxes 16 and 18 if state and
local tax withholding applies.
idelity is not involved in the preparation of the content
F
supplied at the third-party unaffiliated website and does
not guarantee or assume any responsibility for its content.
§
W-2 income is
reported on Line 7 of
Form 1040. (Income from
1099-MISC is reported
on Schedule C.)
4
34
STEP
Step 11
STEP33
Step
STEP
Step 2
STEP
Step
4 4
FAQ
FAQ
STEP
Step
5 5
Assemble information on the
purchase and sale of your stock.
3
You will need to refer to two documents this year. Your Fidelity Brokerage 1099-B Tax-Reporting
Statement and your 2015 Supplemental Information Form. The Supplemental Form may contain
information that is not reported on your 1099-B due to new cost basis regulations. If the amounts on
these two forms differ, you’ll need to use information from both of these to complete your tax forms to
ensure you don’t overpay taxes.
Example: Fidelity Brokerage 1099-B Tax-Reporting Statement
1
2
3
4
5
2015 TAX REPORTING STATEMENT
NAME
6
7
Account No.
800-000-0000
0 00
FORM 1099-B*
Copy B for Recipient OMB No. 1545-0715
2015 Proceeds from Broker and Barter Exchange Transactions
Short-term transactions for which basis is reported to the IRS --report on Form 8949 with Box A checked and/or Schedule D, Part I
Proceeds are reported as gross proceeds unless otherwise indicated (a).(This Label is a Substitute for Boxes 2, 3, 5 & 6)
(IRS Form 1099-B box numbers are shown below in bold type)
1a Description of property, Stock or Other Symbol, CUSIP
Quantity 1b Date
Acquired
Action
1c Date Sold
or Disposed
1d Proceeds
1e Cost or
Other Basis (b)
1f Code, If Any
1g Adjustments
Gain/Loss (-)
4 Federal
14
Income Tax State
Withheld
16 State
Tax
Withheld
Sale
Cash In Lieu
Sale
Cash In Lieu
179.000
04/30/15
05/22/15
6,253.35
5,606.64(e)
0.552
04/30/15
05/28/15
19.33
17.28(e)
2.05
194.000
09/30/15
10/19/15
5,592.74
4,720.02(e)
872.72
0.534
09/30/15
10/22/15
12.98(e)
2.45
15.43
Subtotals
11,880.85
10,356.92
TOTALS
11,880.85
Box A Short-Term Realized Gain
Box A Short-Term Realized Loss
Box A Wash Sale Loss Disallowed
Box A Market Discount
10,356.92
646.71
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
1,523.93
0.00
0.00
0.00
0.00
* This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you
if this income is taxable and the IRS determines that it has not been reported.
— CUSIP (your company’s ticker/trading
symbol)
5
— Proceeds (gross proceeds from stock sale)
6
—C
ost or Other Basis (this is provided to
the IRS as directed, and may need to be
adjusted — see Supplemental Form)
7
— Gain/Loss (from the proceeds of the
sale and may also need to be
adjusted — see Supplemental Form)
2 — Quantity (number of shares sold)
3
4
— Date Acquired (date shares
purchased)
— Date Sold or Disposed
4
1
44
Continues
Step 11
STEP
Step 2
STEP
Step
STEP33
Step
4 4
STEP
Step
5 5
STEP
FAQ
FAQ
Assemble information on the
purchase and sale of your stock.
3
Example: 2015 Supplemental Form
2015 SUPPLEMENTAL INFORMATION
Account No.
800-000-0000
NAME
Note: This information is not reported to the IRS. It may assist you in tax return preparation.
8
Detail Information
9
0
10
Supplemental Stock Plan Lot Detail
Based on the disposal method you have selected, the lots that appear on your 1099 Supplemental may differ from the lots on the 1099-B.
Short-Term Transactions
Description of Property, Stock or Other Symbol, Cusip
Grant
Type (w)
Quantity
QSP
179.000
QSP
0.552
QSP
194.000
QSP
0.534
Date of
Acquisition (x)
Date Sold
or Disposed
04/30/15
04/30/15
09/30/15
09/30/15
05/22/15
05/28/15
10/19/15
10/22/15
Totals
Proceeds
Ordinary Income
Reported (y)
Adjusted Cost or
Other Basis (z)
Wash Sale Loss
Disallowed
Adjusted Gain/Loss
6,253.35
19.33
5,592.74
15.43
294.99
0.91
248.32
0.68
5,901.63
18.19
4,968.34
13.66
0.00
0.00
0.00
0.00
351.72
1.14
624.40
1.77
11,880.85
Short-Term Adjusted Realized Gain
Short-Term Adjusted Realized Loss
Wash Sale Loss Disallowed
10,901.82
979.03
0.00
0.00
8
— Ordinary Income Reported (cross reference this with your company W-2 and input in column (g)
of the 8949)
9
— Adjusted Cost Basis (this amount is used to recalculate your gain/loss and is equal to the
ordinary income plus the cost basis on your 1099-B)
10
— Adjusted Gain/Loss (recalculated per your new basis; proceeds minus your adjusted cost
basis — this amount goes on column (h) of the 8949)
54
4
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4
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4 4
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Step
5 5
FAQ
FAQ
Use the forms to calculate your capital
gains and/or losses on IRS Form 8949
and IRS Form 1040, Schedule D.
Even though the ordinary income may be reported on your W-2, you still need to report the sale of the
stock on Form 8949 and carry over the amounts to Schedule D.* You will need both your 1099-B and
Supplemental Form to help you complete your tax forms.
In preparation for completing these forms, consider the following:
1. How long did you hold the shares before you sold them? This determines which section of Form 8949
to complete.
Form 8949 is divided into two parts. Determine which section you will need to complete:
• Part I is for short-term capital gains or losses. Short term is defined as selling the stock less than
one year from the date you acquired it.
• P
art II is for long-term capital gains and losses. Long term is defined as holding the stock for more
than one year from the date you acquired it.
oes the cost basis on your 1099-B match the amount on your Supplemental Form? If it doesn’t, you
2. D
may need to make an adjustment on Form 8949. This is because you may have already paid tax on
your ordinary income (as reported on your W-2) and you don’t want to pay taxes twice.
*State and local taxes may also apply and the rules governing such taxes may vary from federal income tax rules. Please consult your tax advisor.
64
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4
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4 4
STEP
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5 5
FAQ
FAQ
Example: ESPP Purchase and Sell after Holding Short Term (held less than 1 year)
To complete Form 8949
and Schedule D, you
need to know:
• N
umber of shares
you sold
• The date of sale
• W
hen you acquired/
purchased those shares
• T
he gross proceeds
from the sale
• Your Cost Basis
• A
mount of ordinary
income (from
Supplemental Form)
4
74
Continues
STEP
Step 1
4
STEP
Step 2
STEP33
Step
STEP
Step
4 4
STEP
Step
5 5
FAQ
FAQ
Example: ESPP Purchase and Sell after Holding Long Term (held longer than 1 year)
Note: Qualified Dispositions will always be considered long-term holdings.
To complete Form 8949
and Schedule D, you
need to know:
• N
umber of shares
you sold
• The date of sale
• W
hen you acquired/
purchased those shares
• T
he gross proceeds
from the sale
• Your Cost Basis
• A
mount of ordinary
income (from
Supplemental Form)
4
84
STEP
Step 11
5
STEP
Step 2
STEP33
Step
STEP
Step
4 4
STEP
Step
5 5
FAQ
FAQ
Use IRS Form 8949 to calculate your capital gains
and/or losses on IRS Form 1040, Schedule D.
Gain or loss from the sale of the stock should be reflected on Form 8949 and Schedule D. How this is reflected is
dependent on whether the sale is short term (less than one year from the date the stock was acquired to the date
it was sold) or long term (more than one year from the date acquired to the date of sale).
Example: Short-Term Gains or Losses
Example: Long-Term Gains or Losses
94
4
STEP
Step 1
STEP33
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STEP
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STEP
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4 4
STEP
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5 5
FAQ
FAQ
Frequently Asked Questions
Q:I have a “qualified” ESPP. What do “qualified dispositions” and “disqualified
dispositions” mean?
A:A qualified ESPP is provided under Section 423 of the Internal Revenue Code and is
“qualified” for special capital gains treatment if you hold your shares for a certain
period of time. See the example below:
What is the date shares were purchased and when did you sell those shares?
Grant Date/
Beginning of
Offering Period
1/1/2013
Disqualified Disposition
Year 1
Qualified Disposition
Year 2
Purchase Date
Sold
2/3/2014
1/2/2015
For Example:
Grant date/Beginning of offering period: 1/1/2013
Date shares purchased for you: 2/3/2014
Date you sold these shares: 1/2/2015
{
Year 3
You have a disqualified disposition because even
though you sold two years after the grant date, it
was not yet a year after the purchase.
Q:Will I owe other taxes beyond federal tax when I sell my stock?
A:State and local taxes may also apply, and the rules governing such taxes may vary
from federal income tax rules. Please consult your tax advisor for more information.
Go back to the Fidelity SPS Resource Center
If you have questions, a Fidelity Stock Plan Services Representative can help. Call 800.544.9354.
Tax laws are complex and subject to change. State and local taxes may also apply, and the rules governing such taxes may vary from federal
income tax rules. Your actual income tax consequences depend on your individual circumstances. Therefore, you should always consult a qualified
tax advisor regarding your own particular tax situation.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
Fidelity Stock Plan Services, LLC
© 2016 FMR LLC. All rights reserved.
710946.3.0 1.901664.106 SPS-ESPP-TAX-PDF-0116

Determining your 2015 stock plan tax requirements — a step

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