Where do you input an employee stock plan release confirmation?

[PPECPA]

Taxpayer was provided an employee stock plan release confirmation.  On this confirmation is reported a calculation of taxes for Federal, Soc. Sec., Medicare, State, CA-SDI.  Where is this information inputted on Lacerte if at all?  I've never seen this document before but as withholdings are reported on this I'd like to be sure I report this properly.  

Can anyone advise?

[rbynaker]

It's generally included in the W-2.  For all clients with equity compensation I ask for the year-end paystub, which will usually break down various items of income and include YTD totals.

If the shares were also sold, you'll look for sale info on a 1099-B.

Rick

[PPECPA]

Hey Rbynaker

Thanks for the follow up.  Real dumb question here, but is this already reported in with the W-2?  Or do I need to complete a Form D?  What is throwing me off the

the withholding for Fed, State, Soc. Sec., etc.

[rbynaker]

I'd say there's a 99% chance it's already included in the W-2.  Back in the early days I used to see a lot of errors when it comes to equity compensation.  I still see some from time to time but if this is a big employer (i.e. GOOG, MSFT, AAPL) they know what they're doing.  If it's a small local bank . . . maybe not (I think that was the last one I saw that was wrong!)

[PPECPA]

Ok I think I'm getting this...

Short question, do I need to report the sale of the stock on a Schedule D or Form 4797 or is this already included in the taxpayer's W-2?   

Sorry but I just want to get this right

[IRonMaN]

If they turned around and sold it, there should be a 1099B that would get reported on schedule D

[rbynaker]

A stock release and a stock sale are two different things.  Sometimes they happen at the same time (usually referred to as a Same Day Sale).  Sometimes the release statement will conveniently say "Same Day Sale" on it somewhere.  When in doubt:  guessing, assuming, or asking random people on the Internet is not going to give you the answer. 🙂  Get documentation from the client.  If this was sold, there should be a 1099-B.  If it was not sold, it would have been delivered into an account somewhere.  The client should get statements for that account.

Edit: IRMN snuck in ahead of me!  I'm bouncing back and forth between tax forums and the monthly IRIS Teams meeting.

[qbteachmt]

"but as withholdings are reported on this"

Then there likely is some sort of sale, unless your taxpayer makes enough to cover the withholding and taxes out of ordinary compensation.

There might not be a 1099-B. That only happens if a broker gets involved. An inhouse sale means there is no broker, and a minimal or fractional sale to cover the additional tax and withholding is not unusual.

I guess the answer is: Look for evidence of all of the above. Ask your taxpayer for a statement of their current ESOP holdings and any transaction statements.

[PPECPA]

Ugh!

Hope I m not over thinking this.  I'm seeing this more and more with my clients.  Ok so I was provided the following:

• Employee Stock Plan Release Confirmation
• Stock Plan Transaction Supplement
• Stock Plan Gains and Losses

What threw me off at first was the Release Confirmation reported Fed/State, Soc. Sec., State Disability withholdings.  I'm guess that this was included on the taxpayer's W-2?

The Stock Plan Transaction Supplement reports total proceeds, basis, gains and capital gain status.  My question is, do I use this report to prepare a Schedule D or Form 8949?