Equity compensation tax preparation involves reporting income from stock options, restricted stock units, and other equity awards. This service supports employees and executives who receive equity compensation from their employers. We calculate the taxable income from equity transactions and prepare the necessary tax forms to report these amounts.
The process begins with gathering grant agreements, exercise notices, and transaction records from your brokerage firm or employer. We review the type of equity award, exercise dates, sale dates, and fair market values to determine the taxable amount. For stock options, we calculate the bargain element as the difference between exercise price and fair market value. For RSUs, we report the value on the vesting date.
We prepare Form W-2 showing compensation income, including equity compensation amounts in Box 12 with code V. We also prepare Form 8949 and Schedule D for any sales of stock acquired through equity compensation. We calculate short-term and long-term capital gains based on holding periods and prepare any necessary estimated tax payments for large equity transactions.
Typical documents include stock option grant agreements, exercise confirmations, RSU vesting statements, brokerage account statements, Form 1099-B for stock sales, and employer compensation letters. We provide summaries of taxable equity income and capital gains calculations. This service helps equity recipients in Boston, MA properly report complex compensation arrangements.
What's included
Comprehensive equity compensation and rsu tax
Review of equity grant agreements and terms
Calculation of bargain elements for stock options
Reporting of RSU vesting income
Preparation of Form 8949 and Schedule D
W-2 compensation income reporting
Estimated tax payment calculations
Holding period determinations
Massachusetts state tax calculations
Common situations
When you need equity compensation and rsu tax
Executives receiving RSU grants with multi-year vesting periods
Startup employees with ESPP participation and discount purchases
FAQs
Equity Compensation and RSU Tax questions answered
How do you report stock option exercises in Boston, MA?
We report stock option exercises in Boston, MA by calculating the bargain element and including it in your W-2 compensation. We also prepare Form 8949 for any stock sales with appropriate holding period calculations.
When is RSU income taxable in Boston, MA?
RSU income becomes taxable in Boston, MA on the vesting date when shares are delivered to you. We report the fair market value of vested shares as compensation income on your tax return.
What forms do you prepare for equity compensation in Boston, MA?
We prepare your Form W-2 reflecting equity income in Boston, MA, along with Form 8949 and Schedule D for stock sales. We also calculate any estimated tax payments needed for large equity transactions.
How do you handle ESPP discount purchases in Boston, MA?
We calculate the taxable bargain element for ESPP purchases in Boston, MA as the difference between the discounted purchase price and the fair market value on the purchase date, reporting it as compensation income.
Can you help with international equity awards in Boston, MA?
Yes, we handle tax reporting for international equity awards in Boston, MA. We work with foreign tax implications and prepare necessary forms for cross-border equity compensation arrangements.
Compliance Note
We provide tax preparation services. We do not provide legal advice. Complex equity compensation matters may require additional professional consultation beyond basic preparation services.
Example engagement
How we help with equity compensation and rsu tax
Service Type: Equity Compensation and RSU Tax
Location: Boston, MA
Scope: Tax reporting for RSU vesting and stock option exercise
Client Situation
Technology employee with RSU vesting and stock option exercise needing tax preparation
Our Approach
Review grant documents and transaction records, calculate taxable income amounts, prepare W-2 entries and capital gains forms, provide estimated tax guidance
Expected Outcome
Complete tax reporting of equity compensation with accurate income calculations
Example of the type of engagement we can handle
Ready to get started
Get help with equity compensation and rsu tax
Contact us to discuss your situation in Boston, MA. We can share references upon request.