Consider the income tax rates and income ranges that fall within each tax bracket for this year and next. Your restricted stock or restricted stock units (RSUs) vested this year. You exercised incentive stock options (ISOs) this year, you still hold the stock, and the stock price dropped substantially. The stock price rose (or fell) after your exercise of nonqualified stock options (NQSOs) or your restricted stock/RSU vesting this year. The tax treatment is fixed at the time you exercise options or stock appreciation rights, and at the vesting of RSUs or restricted stock (assuming no Section 83(b) election for restricted stock).

Source: Forbes December 09, 2019 21:00 UTC