Stock Options on a Work Visa: 4 Situations and Who Fits Each

Stock Options on a Work Visa: 4 Situations and Who Fits Each

Stock options on a work visa come with a question that a US citizen never has to ask: for tax purposes, are you a US resident right now? The answer is a test under US tax law that can differ from your immigration status, and it decides what the US taxes when you exercise or sell.

Two firms in our featured program are written up here. Doug Johnson CPA, a Los Angeles firm that lists Equity Compensation among its specialties, may fit where the question is the option itself and the numbers around it. Iota Finance, a Florida accounting, tax and fractional CFO firm that lists Equity Compensation and Digital Nomads, may fit where the question is a move across borders. Neither profile names visas or nonresident filings, so ask each firm what it has handled. Every firm named is a vetted Sam's List member. The firms written up below are paying members of our featured program, and payment does not buy the language we use or its reviews. How we picked is at the end.

The four situations are not ranked and neither are the firms.

Situation 1: Nonresident Alien Stock Options on a Work Visa Exercised in the US

You are in the US on a work visa and have not yet met the substantial presence test or become a green card holder, so you are generally a nonresident alien for US tax purposes. In that case the US generally taxes you on income from US sources, and compensation is generally sourced to where you do the work.

For nonresident alien stock options, the usual question is how much of the option's value is attributed to work done in the US over the grant and vesting period, and how much to work done elsewhere. Only the portion tied to US work is generally taxed here, and the way to measure that depends on the option type and the plan. A tax treaty may change the result.

Doug Johnson CPA may fit. Equity compensation is a listed specialty, and the firm positions itself for high earners with it.

The limitation: nonresident filings use different forms and rules than a resident return, and the profile does not mention them. Ask whether the firm prepares nonresident returns and how it allocates option income between US and non-US work.

Situation 2: Stock Options on a Work Visa After You Pass the Substantial Presence Test

Some visa holders pass the substantial presence test after a year or two, or switch status. Substantial presence test equity cases are common because the grant and the vesting period often straddle the day you become resident.

The test counts days of physical presence in the US over three years, with a weighting for earlier years, and some visa categories exclude certain days. For people who meet it, a resident year can include part of the year as a nonresident, which creates a dual-status return. An option that was granted before you became resident and exercised after may be partly taxed as a nonresident's income and partly as a resident's.

Doug Johnson CPA may fit for the equity side. Iota Finance, which lists Equity Compensation too and serves clients nationwide, may fit, since it lists Digital Nomads as a specialty.

The limitation: whether you count days, which days are excluded and when your residency starts are fact questions, and a dual-status return is a specialty. Ask each firm whether it prepares them.

Situation 3: Leaving the US With Unvested or Unexercised Options

You exercise stock options on a work visa and then your visa ends, or your employer moves you home. Departures raise two questions. First, which of your vesting service was performed in the US, since that generally determines what the US can tax. Second, what the country you move to does with the same options, and when.

The two countries may tax the same event on different dates, at different values and at different rates. A treaty or a foreign tax credit may reduce double tax, but you generally have to claim it, and the two sides do not always agree on the numbers. Some plans also limit how long you can exercise after you leave.

Iota Finance may fit. It lists Digital Nomads and Equity Compensation as specialties and serves clients nationwide.

The limitation: the profile does not describe treaty claims or another country's rules, and those are for a local adviser. Ask who coordinates between the two before you leave, not after.

Situation 4: A Change of Status, Including a Green Card, During the Vesting Period

You are on a work visa now, and a green card application is pending or approved. A green card holder generally becomes a US tax resident on the first day they are physically present in the US as a permanent resident, for example the approval date for someone adjusting status in the US or the entry date for someone arriving on an immigrant visa, whatever the day count. The status change can therefore move the date you become taxed on worldwide income.

That matters for options. Income recognized after you become a resident may be taxed in the US regardless of where you did the work, while options exercised earlier may sit under nonresident rules. The order of events, and not just the totals, can change what is taxed.

Doug Johnson CPA may fit, since it lists Equity Compensation, and Iota Finance may fit, since it lists Digital Nomads as a specialty.

The limitation: tax residency and immigration status are separate tests, and a tax preparer cannot advise on immigration. Ask your immigration attorney about status and your tax professional about the tax result.

Where Doug Johnson CPA Fits

Doug Johnson CPA is based in Los Angeles, founded in 2024, with three employees, serving clients nationwide. Its live profile positions the firm for growing businesses in the $250,000 to $10 million revenue range and for high earners with equity compensation.

Doug Johnson CPA has 15 verified client reviews on Sam's List. Each review is submitted by an individual who identifies as a client of the firm and rates it on communication, subject-matter knowledge, and overall satisfaction. Reviews reflect those individual experiences and do not represent an endorsement by Sam's List. Doug Johnson CPA is a paying member of our featured program, and payment does not buy its reviews. Ratings and rankings are not indicative of future performance or results.

The limitation, plainly: the profile does not mention nonresident returns, visas or treaties, so ask what the firm has handled. It lists minimums of $250,000 in income and $250,000 in revenue, so a smaller earner may fall outside what it takes on.

Where Iota Finance Fits

Iota Finance is a Florida firm, founded in 2022, with seven employees, serving clients nationwide. Its live profile names Igor Tutelman CPA as Managing Partner and lists Cryptocurrency Investors, Digital Nomads and Equity Compensation as specialties. It describes monthly accounting, tax and fractional CFO work for small businesses, startups and entrepreneurs.

Iota Finance has 14 verified client reviews on Sam's List. Each review is submitted by an individual who identifies as a client of the firm and rates it on communication, subject-matter knowledge, and overall satisfaction. Reviews reflect those individual experiences and do not represent an endorsement by Sam's List. Iota Finance is a paying member of our featured program, and payment does not buy its reviews. Ratings and rankings are not indicative of future performance or results.

The limitation, plainly: the profile does not mention visas or nonresident filings, so ask whether the firm prepares them. It lists minimums of $200,000 in income, $500,000 in revenue and $500,000 raised, so an individual employee may fall outside them.

Frequently Asked Questions

Are stock options taxed differently on a work visa?

They can be. What matters is whether you are a nonresident alien or a US tax resident at the time of the income. Nonresidents are generally taxed on US source income, and compensation is generally sourced to where the work was done. Check your status first, then the option type.

What is the substantial presence test?

It is a day-count test that decides whether a person who is not a citizen or green card holder is a US tax resident. It looks at days in the US across three years, with earlier years weighted less, and some visa categories exclude days. Confirm yours with the IRS rules or a preparer.

What happens to my stock options if I leave the US?

Your plan sets whether you can still exercise and for how long. For tax, the US generally looks at which vesting service was done in the US, and your new country may tax the same event too. A treaty or credit may help, but it is not automatic. Plan before you go.

Does a green card change when I am taxed?

Generally yes. A green card holder generally becomes a US tax resident on the first day present in the US as a permanent resident, whatever the day count. That can move income recognized afterward into worldwide taxation. Tax residency and immigration status are different tests, so ask both a tax professional and an immigration attorney.

Before you exercise, gather your grant agreement, the plan, your visa and entry records for the last three years and your pay records by work location. You can browse accountants on Sam's List, including the firms above, and ask each which of the four situations it handles most.

How We Picked These Firms

You should be able to check our work, so here is how this post was built.

The pool. The pool is the two firms written up here, both vetted Sam's List members in our featured program. Their profiles list Equity Compensation among their specialties. This is not a survey of every accountant who handles stock options, and many Sam's List members and other firms not written up here could fit.

How it is organized. The four situations are not a ranking, and neither are the firms. Each is placed where its profile appears to fit the question. We could not confirm from either profile that it handles visa or nonresident cases, and say so.

What review counts mean here. We cite each firm's verified review count and its date from its profile. A count shows how many clients wrote something down. It does not measure technical quality, and a firm with fewer reviews is not a weaker one.

What payment does and does not buy. Listing on Sam's List is free, and so is being named in this article. The firms written up here are paying members of our featured program, which is why they get a write-up. What payment does not buy is the language we use about a firm, its review count, or a promise that it fits you.

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About the author: Kimberly Green is the cofounder of Sam's List, where business owners and high earners find vetted CPAs, financial advisors, and fractional CFOs. She's met one-on-one with 400+ financial professionals and writes from the real data behind thousands of client-advisor matches. Ask her anything about finding an accountant - she's heard it all, including the questions people are afraid to ask.