Should I pay tax for stock options benefit?

Question

I am a Chinese and I work for a US company. I was eligible for a stock option plan this year. When I sell the stock and get benefit. Shouls I pay tax? and how much is the tax rate?

Answer 1

When you sell the stock, you are taxed on the gain from the sale. If you exercise the stock option and hold it for more than one year before you sell it, it is taxed as long term capital gains. If you hold it for less than one year before you sell it, it is taxed at your marginal tax rate as short term capital gains. Also, depending on what type of stock option plan your employer has, you will most likely have to recognize income when you exercise. This means the discount of your option price compared to the market price of the stock is treated as income to you and is subject to tax at your marginal tax rate.

And the US tax laws does not discriminate against anyone based on gender, color, religion or creed. It doesn't matter whether you are Chinese or not, you will not be taxed any differently than if you were Irish, Japanese, German, Italian, Polish, or Jewish.

Answer 2

Yes, If the option is exercised in the US. Taxes will depend upon your status (residend or non-resident alien) and a number of other factors. If you are located outside the US and are not a US citizen, national or resident alien, tax will automatically be withheld by the broker.

Answer 3

You revealed this less than "Australia" so that you gained't get many solutions. you may do what ever you opt on to with the money. regardless of the indisputable fact that, there is not any thanks to attempt this promptly. they could be 2 separate transactions. The effective factors should be taxable and also you may get carry of a deduction for the charitable contributions in case you itemize. usually, inventory concepts are taxed as worry-free income.