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how is stock in an employee stock option plan taxed?

This is class A common stock owned by the employees of Amstead for purposes of retirement. I am 74 years old and have drawn one fifth of my stock for 2006.

Public Comments

1. Stock options are a very complex issue when it comes to income tax. There are several types of "stock options" and each can be treated differently depending how you exercise the option. It is important to have all of the paper work dealing with the option and sale if you have sold the stock after exercising the option. You would be wise to consult an experienced tax professional who has dealt with stock options. The IRS seem to be very "watchful" of a return with stock options.
2. I have stock through my company, it's my 401k plan. If this is what you are referring to, you may actually get a tax break. I know mine is taken out pre-tax, matched by my company and I also got a credit back on my tax filing last year of $50.00 just for having it.....check into it with whoever, if anyone, that files your tax return.