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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 2003–2018

UPDATES! How The Trump Presidency And Tax Reform 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: 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.
NQSOs: W-2s & Tax Returns

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

UPDATES! The 2018 tax season has the potential to be confusing if you sold stock in 2017. 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.
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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.
Restricted Stock Basics

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

Presented by the editor-in-chief of, 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
NQSO Basics

VIDEO! Employee Stock Options: NQSO Taxation

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 Running time: 2:58.
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 2003–2018

NEW! How does tax reform affect stock compensation?

In effect from the start of 2018, the Tax Cuts & Jobs Act has provisions that directly and indirectly affect stock compensation...
Tax Changes 2003–2018

NEW! Did tax reform change the tax-withholding rates on stock compensation? This is premium content

Yes. The Tax Cuts & Jobs Act, which took effect at the start of 2018, changed the withholding rates...
Tax Changes 2003–2018

NEW! How does tax reform affect restricted stock and RSUs? This is premium content

While the core tax treatment of restricted stock and RSUs has not changed, the Tax Cuts & Jobs Act has provisions that directly and indirectly affect restricted stock/RSUs...
Show More Selected FAQs
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

What happens with taxes on stock options if I live or work 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...
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...
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...
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.