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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
Restricted Stock: W-2s & Tax Returns

Restricted Stock & RSUs: 10 Mistakes To Avoid On Your Tax Return This is premium content

UPDATES! This article explains common errors to avoid when your tax return involves restricted stock/RSUs and offers related helpful tips.
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Tax Changes 2003–2017

Tax Planning For Options, Restricted Stock, And ESPPs Since 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.
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.
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 Trump administration and Republican leaders in Congress released an outline of a joint framework for tax reform...
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...
NQSO Basics

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...
Show More Selected FAQs
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

How am I taxed if I participate in a tax-qualified (Section 423) employee stock purchase plan?

You are taxed only at sale, not when the shares are purchased. However, the rules for ESPP taxation are more confusing...
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...
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...
Restricted Stock Basics

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...
Restricted Stock Basics

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.