Don’t Stress, Make Your April Less Taxing

Filing taxes can be stressful – especially if you have multiple sources of income. You'll need to report all taxable income, including W-2 income, 1099-MISC income, investment income, and equity compensation. Here's a quick guide on what you need to file your taxes to make your April less… “taxing”:

Keep track of your income

Your employer will provide you with a W-2 form that reports your taxable income and taxes withheld from your paycheck. If you receive income from self-employment or gig work, you'll receive a Form 1099-MISC. Additionally, your financial institution will provide you with Forms 1099-INT, 1099-DIV, and 1099-B for interest, dividends, and capital gains from your investments, respectively.?

(Please note, your investments with us will send you your 1099’s by mid-February.)

Report equity compensation

If you receive equity compensation, such as stock options, you'll need to report the income and any taxes withheld on your tax return. Your employer should provide you with a Form W-2 or Form 1099-MISC, depending on the type of equity compensation you received.

File Form 1040

This is the main tax return form that all taxpayers must file. On Form 1040, you'll report all your taxable income, including W-2 income, 1099-MISC income, investment income, and equity compensation.

State tax return

Depending on where you live, you may need to file a state tax return in addition to your federal tax return.

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By keeping good records and preparing in advance, you should be able to confidently and swiftly file your taxes if you are a W2 employee. If you are a business owner, have equity compensation, or just to see if you can save more on your taxes next year, please let us know! Our accounting team will happily assist with trickier returns and look for more deductions – while your advisor can make sure your plan is as tax-friendly as possible.

If you have a topic you would like to hear more about within the tax and investment world, please let us know! The Get Invested team is determined to come out with more articles this year to help guide you along your journey.

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Steven Evensen is a Financial Advisor of Santa Monica, Calif-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$1.8B billion in assets under management as of 09/30/22. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results."