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Tax Center

As featured in WebCPA and Plansponsor, our Tax Center teaches the withholding, reporting, and filing rules for stock options, restricted stock/RSUs, ESPPs, and SARs. Browse a section overview below, or explore the subtopics to the left.

Test Your Knowledge Test and improve your knowledge with our NEW! Tax Returns quiz and its study guide in the answer key.

Test Your Knowledge Test and improve your knowledge with our Taxes quiz and its study guide in the answer key.

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.


  Articles   FAQs  

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

Bruce Brumberg
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 myStockOptions Editorial Team
The taxation of RSUs generally resembles that of restricted stock but carries some important differences.

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

The myStockOptions.com Tax Team
UPDATES! The 2016 tax season has the potential to be confusing if you sold stock in 2015. This article explains common errors to avoid when reporting stock sales on your tax return and provides helpful guidance on other tax topics involving restricted stock and RSUs.

12 Tax-Return Mistakes To Avoid With Stock Options And ESPPs This is premium content

Bruce Brumberg and Lynnette Khalfani
UPDATES! The 2017 tax season has the potential to be confusing if you sold stock last year. This article explains common errors to avoid when reporting stock sales on your tax return and provides helpful guidance on various other tax topics involving stock options and ESPPs.

Tax Planning For Options, Restricted Stock, And ESPPs After Recent Tax Law Changes: High-Income Taxpayers Impacted Most (Part 1) This is premium content

Tom Davison and William Whitaker
Notable shifts in tax rates have occurred for people with high incomes. Part 1 surveys these important tax changes and considers their impact on planning.

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

Alan B. Ungar
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.

VIDEO! Employee Stock Options: NQSO Taxation

Bruce Brumberg
To make the most of nonqualified stock options (NQSOs), you must understand their taxation. Learn the tax basics of NQSOs in this video, which features clear and concise explanations by the editor-in-chief of myStockOptions.com. Running time: 2:58.

VIDEO! Employee Stock Purchase Plans (ESPPs): Taxes

Bruce Brumberg
To maximize the benefits of your employee stock purchase plan (ESPP), you must understand the five key tax rules explained in this video. Illustrated by animated examples, the covered concepts include the special rules that depend on how long you hold the shares. Running time: 4:24

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

Tom Davison and William Whitaker
Notable shifts in tax rates have occurred for people with high incomes. Part 2 looks at planning strategies involving capital gains rates, the AMT, and ISOs, and considers general ideas related to income-shifting.

ESPPs 101: Taxation Made Simple This is premium content

The myStockOptions Editorial Team
Your employee stock purchase plan may be one of the best benefits offered by your company. However, to appreciate the advantages of enrolling in the ESPP you must understand the tax consequences of participation. This article explains the tax basics.

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Do you have a chart that compares the tax treatment of stock options, restricted stock, RSUs, and ESPPs? This is premium content

gives 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...

When I file an extension to complete my tax return after the IRS deadline, are there any mistakes I should avoid that involve stock grant income? This is premium content

Stock compensation income can raise your income tax and make your tax return complex. The IRS has a form that lets you apply for an automatic six-month extension for the due date of your tax return (until mid-October). Mistakes include not paying taxes owed with...

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...

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...

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...

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...

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...

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...

For how long must I hold shares purchased under a Section 423 ESPP to receive favorable tax treatment?

To get favorable long-term capital gains treatment...

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