Ordinary income

Regular wage-type income taxed at standard rates, how many RSU vests are treated.

includes wages, salaries, bonuses, and much equity compensation at or exercise. It is taxed at your regular federal income tax rates.

value at is typically , reported on your . spread at exercise is also usually .

is separate from , which apply to price changes after you already own the shares.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.