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As featured in PLANADVISER, PLANSPONSOR, and Accounting Today, the myStockOptions Tax Center explains the tax withholding, reporting, and filing for stock options, restricted stock/RSUs, performance shares, ESPPs, and SARs.

Want to know more? Listen to our podcast on tax return tips and how to avoid reporting mistakes!

Check out our podcast and video on the tax forms and reporting rules for stock sales.

Selected Articles

Tax Changes 2003–2017

UPDATES! How The Trump Presidency And Tax Reform May Affect Stock Compensation

Potential tax changes under the Republican president and the Republican-controlled Congress may have a meaningful impact on stock compensation and employee ownership.
Restricted Stock Basics

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
Tax Changes 2003–2017

Tax Planning For Options, Restricted Stock, And ESPPs After The 2013 Tax-Law Changes: High-Income Taxpayers Impacted Most (Part 2) This is premium content

Part 2 of this article series looks at planning strategies involving capital gains rates, the AMT, and ISOs, and considers general ideas related to income-shifting.
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Restricted Stock Basics

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.
Tax Changes 2003–2017

UPDATES! American Taxpayer Relief Act And Medicare Surtax: Impact On Stock Option And Restricted Stock Strategies This is premium content

Podcast included! The American Taxpayer Relief Act and the Affordable Care Act introduced tax-rate increases you must consider in deciding when to exercise stock options, when to sell company shares, and how to plan around income from restricted stock/RSU vesting. Although tax reform is on the horizon, these tax laws will remain in place until new laws are adopted.
ESPP Basics

IRS Form 3922 For ESPPs: What You Need To Know, And How It Can Help You Understand ESPP Taxation This is premium content

Stock purchases made through an ESPP during a calendar year are reported to you and the IRS on Form 3922 early in the following year. This article explains what you need to know about the information on the form, and how the form can help you better understand the complexities of ESPP taxation.
This is simply a selection of the many articles in this section.
Use the navigation to the left to explore all of the categories in this section.

Selected FAQs

Tax Changes 2003–2017

NEW! How might tax reform affect stock compensation?

The tax-reform principles proposed by the Trump administration would, if converted into law, affect stock compensation in a few ways...
Tax Changes 2003–2017

NEW! How would the repeal of Obamacare affect stock compensation? This is premium content

The repeal of the Affordable Care Act (Obamacare) to make way for new health-care legislation would impact the tax treatment of stock compensation in a few ways...
NQSO Basics

UPDATES! I have moved from one state to another. What happens with the taxes on my stock options if I live in different states during the period between grant and exercise? This is premium content

Generally, each state you live in determines what income is taxable and when. For administrative ease, many companies...
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NQSO Basics

UPDATES! What are capital gains and capital losses? What are the capital gains tax rates?

Capital gain is income that arises from the sale of a capital asset. Gain from the sale of securities held for investment, such as shares acquired from stock compensation...
NQSO Basics

How is capital gain calculated?

The amount of your capital gain is the difference between your sales price and your tax basis in the stock. However, with stock from equity compensation, your tax basis can be harder to determine. It is...
ESPP Basics

What are the eventual tax consequences of participating in a tax-qualified Section 423 employee stock purchase plan (ESPP)?

The rules of ESPP taxation are more confusing than those of stock options and restricted stock. You are not taxed when the shares are purchased: only at...
ESPP Basics

What is an ESPP disqualifying disposition, what can cause it, and why does my company care? This is premium content

A disqualifying disposition occurs when you sell or otherwise...
Restricted Stock Basics

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...
Restricted Stock Basics

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...
Restricted Stock Basics

UPDATES! 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...
This is simply a selection of the many FAQs in this section.
Use the navigation to the left to explore all of the categories in this section.