Options Trading Tutorial

help!!!..INCOME TAX..employee stock options program..how to?

my mother had an employee stock option plan at her old job...she started buying stocks in 2005 and held them until 2009 when she sold $3000 worth of stock...she did her income tax return and forgot to report them so she did an amendement..she only earned around $17000 that year when the amendment was done..the tax preparer added the $3000 for the stocks my mom had sold and told my mom that on those $3000 she owed $2900 in taxes!! she is 54 yrs old, held the stocks for almost 5 yrs..all the tax preparer asked was how long she held them..ive been reading up on them and i read and also from calling IRS that she should have been asked if they were qualified or non qualified stocks...does anyone know anything about this?? it just seems like being taxed $2900 for $3000 is too much...why would anyone ever buy stocks then! should i just take her w2 form and stock form she got for income tax and have someone else do them.?????

Public Comments

1. just selling $3000 worth of stock doesn't mean she made $3000 in capital gains to begin with - $2900 in tax makes no sense, unless there are other things also involved without seeing the tax return, no one can give you a complete and accurate answer