Yes I know there is only one week left, but it is not my fault that I am not done with my taxes. It is really due to my ex-employer, and here is why.
Basically, I exercised my vested stock options when I left my last company. Since the “market value” of the stock was more than my strike price I thought I might as well buy my shares. This was all fine and dandy. In the middle of last year the company issued a cash dividend on its shares, so I got a check for my shares. That was also pretty awesome since the dividends covered about 1/3rd of the price I paid for the stock.
Now, since there was a dividend, the company issued a 1099-DIV for my taxes. However, the funny thing is that they sent the 1099 with a letter that said that they OVERPAID dividends so there may be a corrected 1099-DIV coming in April. I actually have never heard of this before. So now my ex-coworkers and I are all waiting for this phantom 1099.
I am actually not quite sure what happens when a company overpays dividends. They have not asked for any money back, but it seems that they have to account for the dividends a little differently on the 1099. Does anyone know what is supposed to happen?
Anyway, since I do not have a tax refund, I am willing to submit my tax return as late as possible, but some ex-coworkers who are expecting returns are not so happy about what is happening. Private company stocks are really mysterious things, and I cannot find too much information. It is possible that I will just have to file and send in an amended return later, but it sure is annoying.
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Goal for this week: complete our taxes
2 comments ↓
you can file a extension which will allow you file your return until August 2009. but if you know you will owe some taxes, better you pay some estimated tax when you file your extension in order to avoid interests and panelty IRS may charge you when your filing shown you do owe tax at the end.
You know what they say… only two things are certain in life… death and taxes.
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