Equity Compensation Dashboard

ISO Strategy & Profit Simulator

Model exercise costs, AMT (2026 tiers), qualifying vs. disqualifying dispositions, NIIT & AMT credit recovery

Net Profit

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ROI

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Eff. Tax Rate

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⚙ Input Variables

Grant & Share Details

Options Exercised ?

Strike Price ($ / share) ?

FMV at Exercise ($ / share) ?

Sale Price ($ / share) ?

Tax Profile (2026)

Filing Status

Other Ordinary Income ($) ?

State Tax Rate (%) ?

Holding Period Tracker

Grant Date ?

Exercise Date ?

Planned Sale Date

Cost to Exercise

Cash to buy shares

AMT Spread

AMT preference item

Tax at Exercise

Federal AMT

AMT Credit Carried Fwd

Recoverable (Form 8801)

Tax at Sale

LTCG + NIIT + State

NIIT (3.8%)

Investment surtax

Gross Sale Proceeds

Before all taxes

Breakeven / Share

$—

Min price to break even

Net Cash Profit

After all costs & taxes

⚖ Qualifying vs. Disqualifying

Component	✅ Qualifying	⚠️ Disqualifying
Spread Treatment	LTCG	Ordinary Income (W-2)
AMT at Exercise	—	$0 (eliminated)
Fed Ordinary Tax on Spread	$0	—
Federal LTCG Tax	—	—
NIIT (3.8%)	—	—
State Tax	—	—
Total Tax Burden	—	—
FICA Savings vs NSO	—	—
Net Cash Profit	—	—
Eff. Tax Rate on Gain	—	—

📋 2026 ISO Rules & Key Facts

ℹAMT (2026): 26% on AMTI up to $244,500 above exemption; 28% above. Exemption: $90,100 single / $140,200 MFJ. Phaseout: 25¢ per $1 above $500K (S) / $1M (MFJ).
✓Qualifying: Hold 2+ yrs from grant & 1+ yr from exercise. All profit = LTCG at 0%, 15%, or 20%.
!Disqualifying: Selling early reclassifies the spread as W-2 ordinary income in the year of sale. AMT is eliminated on those shares.
ℹNIIT (3.8%): Applies to investment gains when MAGI exceeds $200K (S) / $250K (MFJ). Makes effective max rate 23.8% + state.
✓AMT Credit: Every dollar of AMT paid at exercise carries forward as a credit (Form 8801) — offsetting regular tax in years where regular tax > tentative min. Never expires.
!$100K Cap: Only $100K FMV-at-grant per year can be ISOs; excess auto-converts to NSOs (which owe FICA on the spread).
!90-Day Window: ISOs must be exercised within 90 days of leaving your employer or they expire. Risky at private companies without liquidity.
✓FICA Exempt: ISO spreads are exempt from Social Security & Medicare taxes — even in disqualifying dispositions. Key advantage over NSOs.

RSU Tax & Profit Simulator

Model vesting income, real FICA, withholding gap, sell-to-cover, STCG vs LTCG & NIIT (2026)

Net Take-Home

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Effective Tax

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Holding Benefit

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⚙ Input Variables

Grant & Share Details

RSUs Vesting ?

FMV at Vest ($ / share) ?

Projected Sale Price ($ / share) ?

Tax Profile (2026)

Filing Status

Other W-2 Income ($) ?

State Tax Rate (%) ?

Holding Period Tracker

Vest Date ?

Planned Sale Date

Gross Vest Value (W-2)

Taxable as ordinary income at vest

Federal Income Tax at Vest

Marginal rate on vest income

FICA + Medicare at Vest

SS 6.2% + Medicare 1.45%+

Employer Withholding (22%)

Shares auto-sold by employer

Withholding Gap

Owe more / get refund at filing

Shares Retained

After covering actual tax

Capital Gain / Loss

Gain on retained shares

Cap Gains Tax + NIIT

LTCG or STCG + 3.8%

Net Cash Take-Home

After all taxes & costs

📊 Strategy Comparison: Same-Day vs STCG vs LTCG

Component	⚡ Same-Day Sale	📅 < 1yr (STCG)	🏆 > 1yr (LTCG)
Cap Gains Type	None	STCG (ordinary)	LTCG (0/15/20%)
Vest Tax (Fed + FICA)	—	—	—
State Tax at Vest	—	—	—
Capital Gain	$0	—	—
Fed Cap Gains Tax	$0	—	—
NIIT (3.8%)	$0	—	—
State Tax at Sale	$0	—	—
Net Take-Home	—	—	—
Eff. Tax on Total Value	—	—	—
Benefit of Holding (vs Same-Day)	—	—	—

📋 2026 RSU Rules & Key Facts

ℹVest = W-2 Income: FMV at vest is ordinary income reported on your W-2 (Box 1). Employer withholds at a flat 22% supplemental rate for federal tax — may not match your marginal rate.
!Withholding Gap Risk: If your marginal rate is 24–37%, the 22% flat withholding leaves you under-withheld. You may owe thousands at tax filing. Make quarterly estimates (Form 1040-ES) if needed.
ℹFICA at Vest: RSU vesting income is subject to Social Security (6.2%, up to $176,100 wage base) and Medicare (1.45%) taxes. Additional 0.9% Medicare if income > $200K (S) / $250K (MFJ).
✓Cost Basis = Vest FMV: Your cost basis for capital gains is the FMV on vest date (same amount that was taxed as W-2). Future gain/loss is measured from this price, not $0.
✓LTCG Benefit: Sell >1 year after vest for LTCG rates (0/15/20%) instead of ordinary income rates on the gain. The longer you hold (if the stock rises), the bigger the tax savings.
ℹNIIT (3.8%): Applies to investment income (capital gains) if MAGI > $200K (S) / $250K (MFJ). Applies to both STCG and LTCG. Stacks on top of cap gains rate.
!Selling at a Loss: If the stock drops below vest FMV, you have a capital loss deductible against other capital gains. Only $3,000/year of net capital loss can offset ordinary income. Excess carries forward.
✓Basis Error Risk: The #1 RSU mistake is double-counting the vest income on your tax return. Your 1099-B may show $0 basis — enter your correct basis (vest FMV × shares sold) on Schedule D.