Solved: ESOP Tax liability question
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
taxed_out
Level 1

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?

1 Best answer

Accepted Solutions
MaryK1101
Expert Alumni

ESOP Tax liability question

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. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
MaryK1101
Expert Alumni

ESOP Tax liability question

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. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Dynamic AdsDynamic Ads
v
Privacy Settings