Options Trading Tutorial

Is there additional taxes, other than initially taken out, on exercised/cashed stock options?

Public Comments

1. No but if you received a 1099-B for the proceeds you need to report the sale as short term on Schedule D with no gain or loss.
2. When I had options, there was money withheld. The net income from the options is income (reflected in your W2 perhaps?) and the withholding counts as tax paid. The withholding may be more than, the same as, or less than the amount of extra income tax actually owed because of the options.