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I have a question related to backup withholding. I am on H1-

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I have a question related to backup withholding. I am on H1-B and pay taxes here. Am I exempt from backup withholding or not when exercising the stock options allocated by my employer?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I am working for a Austin, TX based company. My company allocated a few stock options that I would like to exercise

Accountant's Assistant: Is there anything else the Accountant should be aware of?

I am filling out a W-9 form and I would like help in choosing the option for Backup Withholding.

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Answered in 15 minutes by:
6/1/2017
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,860
Experience: Taxes, Immigration, Labor Relations
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As you are on H1B visa - you are most likely a resident alien for tax purposes (do not confuse with immigration purposes!)
So far - backup withholding are regulated by same rules as for other US persons.
when you exercise the stock options granted by your employer - a part of that amount is treated as wages - and that part is subject to withholding as such.
The other part is NOT subject to withholding.
You will need to provide a signed form W9 to the broker.

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