Use the right cost basis to avoid overpaying taxes
Cost basis is just a fancy term given to the purchase price paid to acquire shares—and it’s used to determine the gain or loss when those shares are sold. For stock plans, your cost basis may need to be adjusted to reflect the compensation income you already reported and paid tax on. But don’t worry—Fidelity will calculate your cost basis and provide it on the tax forms you receive.
Related resources and actions
Highlights of key IRS tax changes to be aware of when preparing your tax return.
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