Stock Plan Services FAQs: Taxes
Does the tax-reform legislation adopted in December 2017 affect my 2017 taxes?
No. The tax-reform legislation adopted in December 2017 does not affect the 2017 tax year or the federal tax return for 2017 that you file in 2018. For more information about how the legislation affects treatment of equity compensation in 2018, please see Four Ways Tax Reform Affects Stock Compensation.
When will I receive my tax forms from Fidelity?
Most tax forms, unless otherwise noted, are posted online by the IRS deadline of February 15. (If the 15th is a holiday or weekend, the deadline is the next business day.) You can view and download your available tax formsLog In Required and get up-to-date information on the status of your additional forms.
What resources are available to me as a Fidelity customer?
One benefit of being a Fidelity customer is access to some of the most comprehensive tax information and resources available in the industry. Tax information specific to your stock plans can be found at Understanding stock plan taxes.
You can also find a wealth of resources at Tax Information, including:
- Tax articles
- Tax planning tools and calculators
- Fidelity's tax forms, mailing schedule, and much more
What is new for this tax season?
In general, this year brought no major tax changes to consider for 2017 income reported on 2017 tax returns in 2018. The tax legislation in Congress does not affect 2017 taxes.
Fidelity has created guides that will help you determine your tax reporting requirements specifically for your stock plans. New versions will be posted in late January at Understanding stock plan taxes.
Your Form W-2 should be provided by your employer. IRS Form 1040, Schedule D: Capital Gains and Losses, and Form 8949 are available online at www.irs.gov, by calling 1-800-TAXFORM (829-3676), or by visiting your local IRS office. Note that mailing dates are subject to change.
What is cost basis, and where can I find that information?
Cost basis is determined under rules set forth under the Internal Revenue Code, as interpreted by the U.S. Treasury and the Internal Revenue Service. Cost basis is usually equal to what you paid for your shares (generally, the purchase price) plus or minus certain adjustments. You must calculate cost basis to determine the amount of reportable capital gain or loss that is generated by the sale of your securities.
Cost basis and capital gains and losses are reported on Form 8949 and Schedule D. Fidelity provides estimated cost basis, gain/loss, and holding period information to customers as a courtesy service; however, such information may not reflect all adjustments that may be necessary for tax reporting purposes. Remember to determine and report the capital gain/loss amount on both your Form 8949 and your Schedule D and the ordinary compensation income amount on your 1040 for these transactions.
Your Form 1099-B Tax Reporting Statement will no longer report adjusted cost basis; for adjusted cost basis, please refer to the Stock Plan Supplemental Form. Consult your tax advisor regarding what portion of the gain, if any, may be taxed as ordinary compensation income and how to reflect such ordinary income treatment on your tax forms.
To learn more about tax reporting for stock sales, watch a short video about Cost Basis (6:24).
My employer's W-2 doesn't show the taxes I paid when I exercised and/or when my grant vested. How do I know how much I paid?
Your W-2 from your employer should include any tax withholding paid in connection with exercises or grant vesting in the totals of the taxes paid for the year. If it doesn't, you can find specific information on the taxes you paid for any exercises or vesting from your confirmations or statements.
Why did I get a 1099-B and Supplemental Form? I already had taxes withheld when I exercised.
Your employer reports compensation paid to you on Form W-2 (or Form 1099-MISC for nonemployees). If Fidelity receives data on your ordinary income from your employer, this amount will be reflected on the Stock Plan Supplemental Form. We report proceeds from the sale of stocks, mutual funds, bonds, and notes on Form 1099-B.
You need all this information for your taxes, as it is your responsibility to report gains or losses from stock sales on Form 8949 and Schedule D.
Am I able to have my tax refund deposited into my Fidelity account(s)?
You may be able to direct deposit your IRS or state tax refund into your Fidelity account(s). Learn more at Direct Deposit Your Tax Refund.
How does Fidelity interact with third-party tax-preparation software?
Information from the following Fidelity nonretirement account tax forms can be automatically imported into your third-party tax-preparation software:
- 1099-DIV Dividends and Distributions
- 1099-MISC Miscellaneous Income
- 1099-INT Interest Income
- 1099-OID Original Issue Discount
- 1099-B Proceeds from Broker and Barter Exchange Transactions
Note that if you received a Stock Plan Supplemental Form, this information will not be imported into your third-party tax-preparation software. For more formation, refer to Fidelity's stock plan guides at Understanding stock plan taxes.
Investing involves risk, including risk of loss.
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.