> Stock and bonuses are W2 income and taxed at your marginal rate
If you click on the link of that text, their point is that stock is not always W2 income.
For example, if someone joins a startup, pre-exercises and files an 83b, that gives a vastly different tax outcome than RSUs at BigPublicTechCo. Conversely, if someone joins a startup and does not exercise their options, then wants to quit after the stock has gone up 10x but isn't liquid, they will have to pay a hefty AMT when they exercise.
Many people aren't aware of startup stock tax implications, and they should learn more about it (i.e. click the link in the article).
If you click on the link of that text, their point is that stock is not always W2 income.
For example, if someone joins a startup, pre-exercises and files an 83b, that gives a vastly different tax outcome than RSUs at BigPublicTechCo. Conversely, if someone joins a startup and does not exercise their options, then wants to quit after the stock has gone up 10x but isn't liquid, they will have to pay a hefty AMT when they exercise.
Many people aren't aware of startup stock tax implications, and they should learn more about it (i.e. click the link in the article).