Understanding stock plan taxes

Follow the steps outlined in these guides to help you understand your tax reporting obligations for each of the following types of stock plans.

View the tax guide for your stock plan

While ISO plans offer potentially favorable tax benefits, reporting requirements can be complicated.

Each time you sell shares from a qualified employee stock purchase plan, a taxable event occurs.

Each time you sell shares from a non-qualified employee stock purchase plan, a taxable event occurs.

You may need to report taxable ordinary income when your restricted stock units or awards, performance shares, or performance units vest.

You may need to report taxable ordinary compensation income when you exercise or sell shares acquired from a stock-settled plan.

You may need to report taxable ordinary compensation income, in addition to any capital gains or losses, when you exercise or sell shares.

Fidelity resources to help you with taxes

4 ways tax reform will affect equity compensation (PDF)
While recent tax reform won't affect your filings for 2017, you may have questions about how changes could affect you in the coming year.


Equity Compensation: Tax Treatment Guidelines (PDF)
See an overview of the types of taxes that apply to the most popular types of grants, when these taxes are triggered, and when tax withholding (if any) applies.


Stock plan tax FAQs
See commonly asked questions to help you keep up with this tax season.

Forms, tools, articles, and other information you need for tax planning and filing.

Whether you want to plan for retirement, pay for college, or something else, we can help you create an investment strategy that fits your needs.