June 06, 2016
Tax Director Donald Zidik explained the potential tax ramifications of T-Mobile’s new customer stock plan, with the Washington Post.
By Brian Fung
T-Mobile wants its customers to have a stake in the company's future - literally. So it's offering existing subscribers a free share of its stock and additional shares to any customer, new or old, who draws fresh converts from competing wireless networks.
Additional shares customers receive for recommending friends would have to be documented on a 1099 form by T-Mobile, and customers would need to report the shares as taxable income on their tax returns. The value of the additional shares would be listed as "other income" on their 1040 tax form, where the money would be taxed the same as the rest of their ordinary income, said Donald Zidik, an accountant with Marcum LLP in Needham, Mass.