Will I have to pay taxes on stock grants?

October 31, 2005

Date:   Fri, 23 Sep 2005
From:   Santosh

Dear Mike,

Great site! I stumbled upon it from a Google search.

I work for a startup company. I received 60% of last year’s bonus in cash and 40% as stock grants. My employer estimated the value of the shares as $1 per share.

Will I have to pay taxes on the stock grants?




Date:   Wed, 12 Oct 2005

Hello Santosh,

Assuming the grant was fully vested, it is taxable. Your employer should include the value of the grant on your W-2 form as part of your wages.

Good luck!

Mike Gray

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