7 costly equity compensation tax traps, and how to avoid them

WHYFRAME // Shutterstock7 costly equity compensation tax traps, and how to avoid themEquity compensation taxes often surprise tech professionals because company withholding rarely covers the full bill. Key Takeaways for Equity Tax OptimizationRSU vesting creates immediate tax liability. Professional tax planning becomes essential for equity compensation exceeding $100,000 annually. Why Equity Tax Planning MattersFor some tech employees, equity compensation can make up 30%-70% of total income. Equity Compensation at a Glance: RSUs vs. Stock Options vs. ESPPsDomain Money7 Costly Equity Compensation Tax Traps1.