Author Topic: Company stock plan taxes, do I have this right?  (Read 270 times)

Goldy

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Company stock plan taxes, do I have this right?
« on: February 08, 2019, 10:54:22 AM »
The company I work for offers a company stock plan where you buy shares quarterly and after 3 years the company matches the number of shares you purchased.  Each quarter I now have these vesting shares rolling in and the stock price has been steadily rising so there is good bit of appreciation.  When they award the matching shares they automatically sell some of the awarded shares to cover the tax.

In December 2018 I decided to sell 20 shares and come January 2019 I was surprised when instead of receiving a 1099-B I received a 1099-DIV covering the qualified dividends but it had $0.00 in the cap gains and cost fields.  Should I expect a late 1099-B or is this stock plan somehow not taxing gains made? 

Needless to say, I am confused and the support desk has no idea.  All of the plan documentation doesn't seem to go into this level of detail, everyone just says talk to a personal finance expert so here I am.

Grafter

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Re: Company stock plan taxes, do I have this right?
« Reply #1 on: February 09, 2019, 10:57:03 PM »
Seems a bit unusual, like an ESPP with a feature where you get RSUs with it.  I'm not heard of such a thing before.  However, did the value of the vesting shares hit your W-2 and paystubs? 

Though, 1099-B forms aren't due until 2/15/19, so you very well many receive one after your 1099-Div. 

Goldy

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Re: Company stock plan taxes, do I have this right?
« Reply #2 on: February 10, 2019, 08:47:57 PM »
The value of the vesting shares did hit my paystubs.

I think you nailed it with the 1099-B coming out in a week.