Focus · Equity compensation
Tax help for employees with RSUs, stock options and ESPP
Equity compensation is one of the most commonly mis-reported items on a tax return. Brokerage forms often show the wrong cost basis, so income gets taxed twice. We catch it — and help you plan what comes next.
Who we help
- Tech, healthcare and corporate employees receiving RSUs
- Employees exercising incentive or non-qualified stock options
- ESPP participants selling shares
- Startup employees considering an 83(b) election
- Anyone who moved states while their equity was vesting
What we handle
RSUs and the double-tax trap
RSUs are taxed as wages when they vest, and that income is already on your W-2. When you sell, your 1099-B often reports a cost basis of zero or leaves it out entirely. Filed as-is, you pay tax on the same income twice. We reconcile your supplemental statements and report the correct basis on Form 8949.
Under-withholding
Employers commonly withhold on RSU income at a flat supplemental rate that can be far below your actual bracket. We spot the gap early and set up estimated payments so April holds no surprises.
Incentive stock options (ISOs) and AMT
Exercising ISOs doesn’t create regular income, but the spread can trigger alternative minimum tax. We model exercises before you make them, track your AMT basis separately, report qualifying and disqualifying dispositions correctly (Form 3921), and recover prior AMT through the minimum tax credit.
Non-qualified options and ESPP
We report NSO exercise income and basis correctly, and split ESPP sales (Form 3922) into their ordinary-income and capital-gain pieces based on whether the sale was a qualifying disposition.
Moves and multi-state allocation
If you lived or worked in more than one state while equity vested, part of that income may be taxable in each state. We allocate it correctly so you aren’t taxed twice at the state level either.
Common questions
Why does my 1099-B show a $0 cost basis for my RSU shares?
Brokers are often not allowed to include the compensation portion in reported basis. Your true basis is generally the fair market value included in your wages at vesting. We use your supplemental statement to report the correct basis so you aren’t taxed twice.
Will exercising my ISOs trigger AMT?
It can. The bargain element at exercise is an AMT adjustment. We can model how many options you can exercise before AMT applies, and plan the timing of sales.
Do you help with planning, or only preparation?
Both. Preparation starts at $800. For year-round equity planning — exercise timing, sale strategy, estimated payments — see our tax advisory service.
Let’s make this year’s taxes the calm part.
Book a short introductory call. We’ll learn about your situation, tell you plainly how we can help, and give you a clear fee before any work begins.