TaxMyVestRSU, ESPP & stock-option tax calculators
ISOs Can Tax You Without Selling a Single Share
Exercising stock options can trigger a tax bill even if you sell nothing. With an ISO, the gap between your strike price and the market price counts as income under the alternative minimum tax (AMT) the moment you exercise — and people get blindsided by five-figure AMT bills they never saw coming.
Watch on YouTube · From the Vest & Nest channel
Transcript
Michael: Exercising stock options can trigger a tax bill even if you sell nothing. Here's how. An ISO — incentive stock option — lets you buy shares at a fixed strike price.
Amy: What happens when I exercise?
Michael: When you exercise — when you use that right — the gap between your strike price and the market price counts as income under the alternative minimum tax or AMT.
Amy: Do people see it coming?
Michael: People get blindsided by five-figure AMT bills they never saw coming.
Amy: Where can I check?
Michael: TaxMyVest.com shows your AMT adjustment before you exercise. Free. No signup. Check before you exercise.
Amy: Thanks for watching!
Michael: Take care. Like! Subscribe! and Share!
Check your AMT before you exercise
The ISO / NSO calculator shows your AMT adjustment the moment you enter your numbers, estimates the tax, and shows what it costs in cash to exercise and hold.
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