Stock Plan Services

1 1 Your Employee Stock Purchase Plan (for Qualified Plans)Only when you sell shares acquired from a qualified employee Stock purchase plan ( espp ) does a taxable event occur. Upon selling shares, you may have taxable ordinary income to report, in addition to any capital gains or losses. Follow the steps outlined in this document to help you determine the IRS tax-reporting to use the Supplemental form to help avoid overpaying taxesDetermining your 2019stock plan tax requirements a step-by-step guide2 Your Employee Stock Purchase Plan (for Qualified Plans)Qualified ESPPWhat is a qualified espp ?A Section 423 espp is qualified under the tax code and allows employees to purchase Stock at a discount from fair market value without any taxes owed on the discount at the time of purchase.

2 To receive favorable long-term capital gains tax treatment on a portion of your gains when the shares are sold, you must hold the shares for the time period required by Section 423 of the tax code. (See the FAQs in the back of the guide for more details.) A Section 423 plan is the most common form of espp offered by do I find out what type of espp I am enrolled in?Your specific plan documents will address whether your espp offering is Section 423 qualified or action do I need to take?If you are enrolled in a qualified espp , please review this Tax ESPPWhat is a nonqualified espp ?A nonqualified espp may be structured like a qualified 423 plan, or it may offer different benefits from a Section 423 plan, but without the preferred tax treatment for do I find out what type of espp I am enrolled in?

3 Your specific plan documents will address whether your espp offering is Section 423 qualified or action do I need to take?If you are enrolled in a nonqualified espp , please click here to review the Nonqualified espp Tax guide . Please read carefully before you Employee Stock Purchase Plan (for Qualified Plans)Gather the following * Fidelity is not involved in the preparation of the content supplied at the third-party unaffiliated website and does not guarantee or assume any responsibility for its content. FORM/DATAWHERE TO FIND ITWHO TO CALLForm W-2 This form will be provided by your company s payroll departmentIRS Form 1040 and Schedule DForms are available online at ,* by calling ( ), or by visiting your local IRS office.

4 Your local IRS office or your tax advisorIRS Form 8949 This form is available online at ,* by calling ( ), or by visiting your local IRS local IRS office or your tax advisorForm 1099-BYou can access the form by logging in to at the end of January. In addition, a form will be mailed to you no later than mid-February, if applicable. A Fidelity Stock Plan Services Representative at the number provided on the statement2019 Supplemental Information (Fidelity is providing you with additional information to supplement your 1099-B due to IRS cost basis regulations that no longer permit brokers to include ordinary income.)

5 You can access the form by logging in to at the end of January. In addition, a form will be mailed to you no later than mid-February, if applicable. A Fidelity Stock Plan Services Representative at the number provided on the statementForm 1099-BSupplemental Information formParticipant uses these Fidelity to Rolls up intoRolls up intoForm 8949 Department of the Treasury Internal Revenue Service Sales and Other Dispositions of Capital Assets Go to for instructions and the latest information. File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule No. 1545-00742019 Attachment Sequence No.

6 12A Name(s) shown on returnSocial security number or taxpayer identification numberBefore you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to IShort-Term. Transactions involving capital assets you held 1 year or less are generally short-term (see instructions). For long-term transactions, see page 2. Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required.

7 Enter the totals directly on Schedule D, line 1a; you aren t required to report these transactions on Form 8949 (see instructions).You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need.(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)(B) Short-term transactions reported on Form(s) 1099-B showing basis wasn t reported to the IRS(C) Short-term transactions not reported to you on Form 1099-B1(a) Description of property (Example: 100 sh.)

8 XYZ Co.)(b) Date acquired (Mo., day, yr.) (c) Date sold or disposed of (Mo., day, yr.)(d) Proceeds (sales price) (see instructions)(e) Cost or other basis. See the Note below and see Column (e) in the separate instructions Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f). See the separate instructions. (f) Code(s) from instructions(g) Amount of adjustment(h) Gain or (loss). Subtract column (e) from column (d) and combine the result with column (g) 2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts).

9 Enter each total here and include on your Schedule D, line 1b (if Box A above is checked), line 2 (if Box B above is checked), or line 3 (if Box C above is checked) Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the Paperwork Reduction Act Notice, see your tax return No. 37768 ZForm 8949 (2019) SCHEDULE D (Form 1040 or 1040-SR)Department of the Treasury Internal Revenue Service (99)Capital Gains and Losses Attach to Form 1040, 1040-SR, or 1040-NR.

10 Go to for instructions and the latest information. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. OMB No. 1545-00742019 Attachment Sequence No. 12 Name(s) shown on return Your social security numberDid you dispose of any investment(s) in a qualified opportunity fund during the tax year?YesNoIf Yes, attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part I Short-Term Capital Gains and Losses Generally Assets Held One Year or Less (see instructions)See instructions for how to figure the amounts to enter on the lines below.