Anonymous
Not applicable

ESOP Tax liability question

I was granted Stock Options (ISO) by my employer in 2020 some of which vested in 2020 but I didn't exercise them. Is there any tax due on vesting of stock options, or it is only at the time of exercising/selling?

MaryK4
Expert Alumni

Get your taxes done using TurboTax

If your employer grants you a statutory stock option, you generally don't include any amount in your gross income when you receive or exercise the option.  You have taxable income or deductible loss when you sell the stock you bought by exercising the option. 

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