Cost basis
Understand the basics of company stock tax reporting
If you've sold company stock or received dividends, you need to report the income on your taxes, including the cost basis of your investments. We understand that tax season is already a complicated time of the year, which is why we've put together a series of resources you can use to take on the taxes related to your company stock with confidence.
To get your tax form, log in to your Schwab account and go to the Statements tab. There, you can click on the drop-down menu under Account to select Equity Award Center. Turn on the Tax Forms filter, and click Search to access your 1099-B tax form.
Does cost basis affect me?
Yes. If you have equity compensation, cost basis is an important part of filing your taxes. Cost basis is the original amount you paid for your company stock plus any commissions, fees, or transaction costs and is used to calculate your capital gains and losses. When doing your taxes, you can calculate the cost basis of your equity compensation to make sure you're filing correctly and not being taxed extra.
Filing tip
If you're using tax software to file, keep in mind that transactions in your Equity Award Center account are separate from your other Schwab accounts and may need to be entered manually.
Resources at the ready
These educational tools can help you learn how to calculate your cost basis and accurately report your company stock taxes.
Learn how to calculate your cost basis depending on the type of equity compensation you own.
From tax tools to forms and instructions, the IRS website has a full rundown of everything you need to know when it comes to filing your taxes.
Need tax support?
We recommend consulting a tax professional.
On-demand education
Prefer to watch or listen? We have a series of webcasts covering the tax reporting for different forms of equity compensation. You can click on your specific type of company stock to learn more about its cost basis.
Articles and guides
If you want more specific information about cost basis, tax forms, or capital gains, we have you covered with these articles.
Know your cost basis
Take a look at all the different methods for calculating your cost basis to see what's right for your situation.
How capital gains are taxed
If you keep seeing the term "capital gains" come up and aren't sure exactly what it means, you can learn more about it and how it's taxed.
Employee stock purchase plan (ESPP) taxes
If you have an ESPP, this guide goes over the tax rules and which documents you need to file in the U.S.
Get the full picture of your company stock
There are many different types of equity compensation, all with their own rules and methods for tax reporting. You can find more information about your specific type of equity compensation and how it's taxed on our Equity 101 page. You can also discover how to make the most out of your company stock and use it to work toward your goals.
Cost basis and company stock tax reporting FAQs
Cost basis is the original amount you paid for your company stock plus any commissions, fees, or transaction costs and is used to calculate your capital gains and losses.
If you don't accurately determine the cost basis of your company stock transactions, you may be taxed twice for that income.
Yes. For 423 qualified employee stock purchase plans, incentive stock options, and non-qualified stock options, you will need to adjust your cost basis on Form 8949. You won't need to adjust your cost basis for restricted stock awards and units and performance stock awards and units, but you will need to use Form 8949 to report the cost basis and the proceeds. For more information, check out the cost basis fact sheet.
The only tax form you need from Schwab is the 1099-B, which can be found in the Equity Award Center.
After logging in to your Equity Award Center account, click on the Statements tab to review your 1099-B form.
No. Our team can help you with account-related questions, but we cannot give you tax advice. If you need additional help, we recommend consulting a tax advisor.
Account questions?
Our team is here for you with 24-hour support from 7 a.m. Monday through 9 p.m. Friday ET.
Get started
If you're ready to start your taxes, you can review your tax form in your Equity Award Center account.