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Articles

VIDEO! Restricted Stock & RSUs (Part 2): Taxes And Related Key Decisions

Presented by the editor-in-chief of myStockOptions.com, this engaging video covers the basic tax treatment of restricted stock and restricted stock units (RSUs), including the tax rates, the timing of taxation, and withholding. Running time: 3:57

Restricted Stock Units Made Simple (Part 2): Taxation This is premium content

The taxation of RSUs generally resembles that of restricted stock but carries some important differences.

Decisions At Grant With Restricted Stock (Part 1): Tax Fundamentals This is premium content

Thanks to the IRS, with restricted stock you have to make decisions immediately at grant. Learn the rules that accompany this increasingly popular type of equity compensation.
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Restricted Stock Taxation: What You Need To Know (Part 2) This is premium content

Restricted stock grants carry their own requirements and tax rules, which can significantly differ from those of stock options.

Living And Working In Multiple States: Challenges For Mobile Employees In The USA This is premium content

Podcast included! Moving between US states, whether to relocate permanently, travel for business, or retire, can involve tax complications for people who have stock compensation. This article presents the tax issues that you may encounter when you leave your home office and cross a state line.

Global Tax Guide To Equity Compensation For International & Cross-Border Employees UPDATES!

The Global Tax Guide explains the taxation of equity awards in 32 countries: stock options, restricted stock, restricted stock units, performance shares, stock appreciation rights, and employee stock purchase plans. The country profiles are regularly reviewed and updated as needed. We do our best to keep the writing lively.

FAQs

Do you have a brief overview of the tax treatment for stock options, restricted stock, RSUs, and ESPPs? This is premium content

The table in this FAQ shows the types of taxes, when they are triggered, and the tax withholding (if any) for various forms of equity compensation granted in the United States. For details, examples, and illustrations...

UPDATES! When and how is a grant of restricted stock or RSUs taxed?

The timing of taxation is different than that of stock options. You pay tax at the time the restrictions on the stock lapse. This occurs when...

I have moved from one state to another. What happens with the taxes on restricted stock or RSUs if I live in different states during the period between grant and vesting? This is premium content

There is no simple answer to questions involving the taxation of mobile employees. Generally, each state you live in determines what income is taxable and when. For administrative ease, many companies...
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Can I control when I will be taxed on a restricted stock grant? This is premium content

Not as you can with stock options. With stock options, tax consequences occur when...

Is the value of my restricted stock at vesting subject to state and local taxes? What if I move? This is premium content

Many states, counties, and cities impose income tax on their residents. Those that do have income tax almost always...

How does the taxation of restricted stock and restricted stock units differ? This is premium content

Technically, different tax code sections apply, though under most grants the tax results are similar. With restricted stock you are taxed at vesting or earlier at grant if you make a timely Section 83(b) election. Most experts believe that with RSUs you cannot make...

What happens if I have a capital gain from one sale of company stock and a capital loss from another sale of company stock or another security? This is premium content

The treatment for tax-loss harvesting is similar to that of owning and selling any two stocks. The income-tax reporting for multiple transactions is...

What is a "substantial risk of forfeiture" and how does it affect the taxation of restricted stock? This is premium content

This tax term applies when rights to compensation are conditioned upon future performance of services or the occurrence of...

UPDATES! Do I get dividends with restricted stock units? How are they taxed? This is premium content

When a company pays dividends on outstanding shares of stock, it can choose...

Is the vesting of my restricted stock a "wash sale"? This is premium content

The wash sale rule disallows the loss on a sale of stock if the same type of stock is...

Are my stock grants affected by the rules of deferred compensation under IRC Section 409A? This is premium content

A number of tax law provisions and interpretations that may affect your stock grants occur in...

Can the IRS seize stock options or restricted stock under a tax lien? This is premium content

The IRS can seize your stock options if it applies a federal tax lien to you for unpaid taxes. After seizing your stock options, the IRS can also...