Statutory vs non-statutory options

[darrenboyd]

There are two types of 'typical option plans': statutory and non-statutory. Exercising a statutory option plan doesn't incur a taxable benefit until the actual stocks are sold, which may be a different tax year. There's a decent summary of it at irs.gov: http://www.irs.gov/taxtopics/tc427.html

You might want to include a reference to it, since it appears that your calculator is based on the exercise triggering a tax event. Exercising may not always trigger a tax event.

[jamesarosen]

Great suggestion. I can do two things:

1. add a sentence with a link in the introduction
2. add another field to the form and turn off the tax calculations for statutory options

For now, I think I'll go with (1).

[darrenboyd]

I'd go with (1) as well.