Taxed as pay the day they vestWithholding almost always falls short. We set up estimated payments or a sell-to-cover plan that matches your real bracket.
GrantNo tax
VestTaxed as pay
HoldGain builds
SellCapital gain
Taxes for people paid in stock.
Tax planning and preparation for RSUs, ISOs, NSOs and ESPP shares, done properly, so April never comes with a surprise.
Equity compensation specialistsAMT modelingCost basis fixed
RSU vest · Nov 15Example
120 shares × $412.30$49,476
Withheld at the flat 22%$10,885
Owed at a 35% bracket$17,317
Still due in April$6,432
Employers withhold RSU income at a flat 22% federal rate. Check your own vests.
Our clients work at
Meta, Google, Apple, Amazon, Nvidia, Microsoft, SpaceX, Tesla, Salesforce, Snowflake, Databricks, Broadcom, Adobe, Genentech, Roblox, Intuit, Uber, Zoom, Zoox, Anthropic, OpenAI, Ramp, ServiceNow
Employers withhold 22% on every vest. Your bracket may be 35%.
Four kinds of stock. Four tax moments.
Each one is taxed at a different point. Knowing which is most of the work.
The spread can trigger AMTWe model how many shares you can exercise before Alternative Minimum Tax kicks in, and track the credit you get back later.
GrantNo tax
ExerciseAMT risk
Hold 1 yrQualify
SellLong-term gain
Taxed as pay when you exerciseWe time exercises across tax years so the income lands in the lowest bracket you can get.
GrantNo tax
VestNo tax
ExerciseTaxed as pay
SellCapital gain
The discount is taxed when you sellHow long you hold the shares decides how the discount is taxed. Before you sell, we show you what each option would cost.
EnrollNo tax
PurchaseNo tax
HoldClock runs
SellDiscount + gain
The equity tax year.
The dates that matter when part of your pay is stock.
Jan
- Jan 15Q4 estimated payment
- Jan 31W-2, Form 3921 for ISO exercises and Form 3922 for ESPP arrive
Feb
- Mid-FebBroker 1099-B arrives, often with RSU cost basis missing
Mar
- MarchCorrected 1099s and K-1s trickle in
Apr
- Apr 15Returns due
- Apr 15Q1 estimate and last day for prior-year IRA contributions
May
- MayA common ESPP purchase date
Jun
- Jun 15Q2 estimated payment and a mid-year withholding check
Jul
- JulyRefresh grants and promotions move your bracket
Aug
- AugustPlan Q4 exercises and sales
Sep
- Sep 15Q3 estimated payment
Oct
- Oct 15Extended returns due
Nov
- NovemberA common ESPP purchase date and a big vest quarter
Dec
- Dec 31Last day to exercise ISOs for this year’s AMT, harvest losses and give to charity
Every form, in place.
Upload everything to the portal. We reconcile all of it, including the cost basis brokers leave out.
- W-2 + 1099-BStock pay and share sales, reconciled so vested shares are not taxed twice
- Form 8949Adjusted cost basis for RSU and ESPP sales
- Form 3921ISO exercises and their AMT adjustment
- Form 3922ESPP purchases, qualifying and disqualifying sales
- Form 6251Alternative Minimum Tax and the credit carried forward
- Schedule ERental income, deductions and depreciation
- State returnsResident, part-year and multi-state returns when stock vests across a move
CP2000Tax year 2025
Example notice
Example notice
We are proposing changes to your tax return
Your broker reported proceeds of $96,210 with a cost basis of $0.
- Proposed tax
- $22,129
- Interest
- $1,416
- You owe
- $23,545
The shares came from RSUs already taxed on your W-2.
RESOLVEDBALANCE $0
Got a letter? Send it to us.
We take the stress out of IRS and state letters. Send it over, and we read it, check the numbers and prepare the response.
- IRS and state tax agency letters
- Notices about stock sales and cost basis
- Plain-language updates at every step, until it is closed
Do the math first.
A calculator and a few posts written for people paid in stock.
Calculator
RSU tax calculator
How far your withholding falls short, based on your bracket and state.
Check your vests BlogRSU taxes, explained
Why 22% withholding leaves most tech employees owing in April.
Read the post BlogISOs and AMT
How to exercise incentive stock options without a surprise tax bill.
Read the postAsked every week.
Why do I owe money when my company withheld tax on my RSUs?
Employers withhold vests at the flat 22% federal supplemental rate (37% above $1 million). If your salary and stock put you in the 32%, 35% or 37% bracket, the difference comes due in April. We set up estimated payments so it does not.
My 1099-B shows a $0 cost basis. Am I paying tax twice?
You will be, unless the basis is corrected on Form 8949. The value of vested shares is already in your W-2. We reconcile every sale so you pay tax on it once.
Should I exercise my ISOs this year?
It depends on the spread, your other income and how long you will hold. We calculate how many shares you can exercise before AMT applies, and what it costs if you go past that.
Do you work with tech employees outside California?
Yes. We work with clients across the US, including people who moved states while their stock was vesting.
I got an IRS notice. What should I do?
Do not pay it yet. Upload it to the portal or email it to us. Many notices about stock sales are reversed once the correct basis is shown.
Talk to us before your next vest.
Tell us what you hold and what changed this year. We will tell you whether we are a fit and what working together looks like.